Serviced office market trends feel the embrace of

LONDON, July 21. 2022 (GLOBE NEWSWIRE) — According to The Business Research Company’s research report on the serviced office market, serviced office companies are increasingly embracing offices with lots of open space and a natural touch. As the pandemic has shifted the focus to social distancing and a healthy work environment, offices will be fully ventilated. The use of sustainable materials such as bamboo, the installation of indoor plants, efficient air conditioning and social distancing will be implemented. In line with growing concern for the environment and an eco-friendly lifestyle, workspaces accommodate nature-inspired floors, live plants and indoor vertical gardens, use of materials recycled in the design of workspaces, etc. This aims to strengthen the human-nature bond and adds to an ecological approach for long-term organizations. Not only that, but energy efficiency is also a major concern and sustainability plays an important role in solving this problem in modern office spaces. The use of technological and minimal contact equipment will be in fashion. Incidentally, sensing the trend of ultra-hygienic office spaces in 2022, major coworking players have already implemented world-class disinfection mechanisms and technology-supported office spaces. For example, according to a report by CBRE Group, Inc., an American commercial real estate investment and services company, almost one-third of the total number of office spaces in six major Indian cities have been certified as green buildings, because property developers are focusing more on sustainability aspects in their projects. Over the past decade, green real estate assets have grown significantly and their share of the total office stock has increased from 24% in 2011 to 31% in 2021.

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The size of the global serviced office market is expected to grow from $27.83 billion in 2021 to $33.30 billion in 2022 at a compound annual growth rate (CAGR) of 19.7%. The market growth is mainly driven by businesses resuming operations and adapting to the new normal while recovering from the impact of COVID-19, which previously led to restrictive lockdown measures involving social distancing , remote working and closing business activities. which resulted in operational difficulties. The serviced office market should reach $64.06 billion in 2026 at CAGR of 17.8%.

Growing demand for flexible office space is expected to be a key driver for the serviced office market over the forecast period. Flexible office providers are renovating old office buildings as they look to add new office space due to high demand from businesses and unicorns after the hybrid working model was introduced during the pandemic. Demand for flexible office space has increased threefold compared to 2021, with the average number of seats required doubling to more than 1,000 seats, compared to 500 seats previously for large companies. Flexible space operators leased over 1.9 msf of office space in Q1 2022 compared to 0.2 msf in Q1 2021, registering a 10x increase on an annual basis. For example, according to JLL India, in the first six months of 2021 (January-June 2021), new office space supply in India reached 25.11 million square feet (sq ft), an increase of 75% year-on-year, across major cities (Delhi-NCR, Mumbai, Bangalore, Pune, Hyderabad and Chennai), due to increased confidence from property companies for the recovery in demand for workspace.

The major players in the serviced office market are WeWork Companies, Servcorp, Regus, IWG Plc., Bizspace Ltd, Alley, Croissant, Davinci Virtual, Greendesk, Hubble, Instant, JustCo, LiquidSpace, Office Freedom, Serendipity Labs, ShareDesk, TechSpace, The Office Group, Breather Inc and Knotel.

The global TBRC serviced office industry analysis is segmented into offering private office, virtual office, etc. by vertical in IT and telecommunications, media and entertainment, retail and consumer goods; by space provider in major, independent brands.

Asia Pacific was the greater region on the equipped office market in 2021. North America was the second largest region in the serviced office market. Regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The Global Serviced Office Market Report 2022 – Global Market Size, Trends and Forecasts 2022-2026 is part of a series of new reports by The Business Research Company that provide serviced office market overviews, analyze the serviced office market, and forecast the market size and growth for the overall market, Serviced Office market segments and geographies, Serviced Office market trends, Serviced Office market drivers, Serviced Office market restraints, Serviced Office revenue key serviced office market competitors, serviced office market profiles and market shares in over 1,000 industry reports, covering over 2,500 market segments and 60 geographies.

The report also gives an in-depth analysis of the impact of COVID-19 on the market. The reports are based on 150,000 datasets, extensive secondary research and proprietary insights from interviews with industry leaders. A highly experienced and expert team of analysts and modellers provide market analysis and forecasts. The reports identify key countries and segments for opportunities and strategies based on market trends and key competitor approaches.

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Jose C. Birney