25 April 2013: Serviced Offices Advice 200 Aldersgate London EC1A 4HD
SO Advice is delighted to announce a new marketing initiative with a well-known Global Financial Services organisation, who has asked SO Advice to assist them with the marketing and disposal of their surplus office space across their EMEA region.
Martin Halling and James Tatham, co-founders of SO Advice, commented:
“This is evident of the growing trend for more creative disposal strategies involving managed solutions and flexible deals structured around a tenant’s fully fitted surplus office space. In the current economic climate, companies find it extremely difficult to shift surplus space using more traditional disposal methods. The option of taking fully fitted space is very attractive to companies looking for immediately available, flexible office solutions, and this particularly applies in Continental Europe.”
In a drive to reduce costs and to avoid inflexible lengthy leases, many companies are actively seeking off-market opportunities for readymade fully fitted space that can be made instantly available to them on flexible terms. This type of solution sits in-between a conventional office lease and a serviced office deal. It is particularly attractive for requirements upwards of 15 people that can be too difficult, or costly, for a typical serviced office centre to accommodate easily.
The benefits of these disposal solutions are in big cost savings for both parties involved. For the Corporate occupier who is willing to adopt a highly flexible disposal strategy, it will dramatically increase their chances of shifting awkward space and reduces liability on underutilised office space. For the user, a fully fitted ready to go office saves on CapEx plus fit out costs, gives them rapid speed to market, and offers those businesses a fast and highly agile solution.
SO Advice is currently marketing fully fitted surplus office opportunities in the following European locations:
- OSLO, Norway
- STOCKHOLM, Sweden
- MILAN, Italy
- HAMBURG, Germany
- BARCELONA, Spain
- THE HAGUE, Netherlands
Offices vary in size from 150m2 to 2,000m2 – approx. 15 -200 w/s.
We are currently talking to selected companies about similar opportunities, and would very much like to broaden that out to other interested parties, either with a specific need for managed space, or occupiers with fully fitted space to dispose of. If you would like more information, then please do not hesitate to contact us at info@SOAdvice.com
SO Advice Market insight
SO Advice joins the BCA:
SO Advice is delighted to announce that we have joined the prestigious BCA trade association for the serviced office and business centre sectors. We will be attending the annual BCA Conference at Senate House, University of London, Malet Street, London, WC1E on Thursday 16th May. We look forward to talking with potential clients and operators alike at this highly prestigious annual event.
Regus continues to grow apace
Hot on the heels of the recent successful acquisition of MWB in the UK, Regus have continued to grow apace globally having recently opened their 1500th centre located in Pune, India. Their global domination of the serviced office sector shows no sign of abating, as they are also strongly rumoured to be acquiring yet another operator in the United States, adding another 32 centres mainly across the Eastern seaboard.
Morgan Stanley Real Estate Funds to sell serviced office group with freeholds for around £250m
In an article recently published in Property Week (click here for article) it was reported that Morgan Stanley Real Estate Funds is preparing to put its serviced office company Executive Offices Group up for sale at around £250m.
The investment bank’s Real Estate Fund purchased Executive Offices in June 2005 for £220m which has been seen as one of Morgan Stanley’s better acquisitions from the boom years.
Executive Offices provide a wide range of serviced ofﬁces, virtual ofﬁces and meeting rooms. The portfolio has an occupancy rate of around 90% and average lease lengths are two and half to three years
The Executive Ofﬁces Group was founded in 1989 and acquired Argyll Business Centres and Corpnex in 2004. The Group now operates four unique serviced ofﬁce brands: Argyll, Palladia, Corpnex and Grosvenor. In 2005, Executive Ofﬁces Group was acquired by Morgan Stanley Real Estate; it is principally focused on London’s West End, midtown and city districts as well as west London, Cambridge and Leeds. The Group operates 34 business centres, providing a wide range of serviced ofﬁces, virtual ofﬁces and meeting rooms.
A sale now will be keenly watched by the London office markets. A prospective buyer could gain control of the prime central London portfolio that contributes much of the company’s value.
Acquisition and launch of Flagship City of London office centre
Serviced Office Group plc, the AIM-listed provider of flexible office space and IT solutions, is currently operating 23 business centres, predominantly in the London area.
The Group recently announced that it has been appointed to manage and design a £3 million refurbishment funded by the owners of Phoenix House, a seven-storey office building at King William Street, London EC4, which will shortly be opened as its new flagship business centre.
Phoenix House will comprise 45,000 sq. ft. of top quality office space, providing a total of 650 workstations, which will be run by SVO on a serviced and semi-serviced basis. The refurbished building will also offer 7,000 sq. ft. of flexible conference space.
There is steadily increasing demand from SMEs for short to medium term lets of office space ranging from 1,500 to 5,000 square feet and SVO is responding to that demand by seeking to manage ever larger buildings, which offer the ability to combine short term lets with semi-conventional office space.
“Since making the commercial property agency & broker communities aware of this exciting new venture within the City we have seen significant interest for space within the building.”Andrew Butler, the Group’s UK Sales Director
“Phoenix House is the latest example of us leading the way within the serviced office sector in creating bespoke office solutions for SMEs and growing corporates who are looking for a step up towards bigger floor plates, but do not want to take on the onerous obligations of leases lasting for five or more years.”Michael Kingshott, Managing Director of SVO