The increasing importance of serviced offices as a competing land use in global cities

Once considered a relatively low key land use in central business districts, the number of serviced offices has increased dramatically in recent years. The factors driving the demand for serviced offices have changed, and the suppliers of this service have reacted quickly to meet these needs. This trend has been assisted by the expansion of a select number of multi-national companies that specialise in the provision of serviced offices, available in a flexible range of office types and costs.
This paper considers the reasons behind the rapid growth in the serviced office market, and examines the role of both the user and the provider. Attention is focused on the global marketplace and how these changes have been transformed into the Australian central business districts. The information will be of benefit to property analysts, developers and investors, especially when seeking an alternative use of existing traditional office accommodation.