The industry will benefit from a workforce that includes more telecommuters who rely on virtual office spaces and conference rooms
New York, NY (PRWEB) January 23, 2015
The Serviced Office Leasing industry is growing; nevertheless, it was not impervious to the downs of the corporate sector, which is among its key downstream markets. The Serviced Office Leasing industry provides businesses with renting and leasing workspace options, including fully furnished offices, virtual offices and conference and meeting rooms. Its end users include start-ups and Fortune 500 companies, and particularly those in the professional, scientific and technical sectors. During the early recovery from the recession, demand for this industry's end users were restrained, as business activity was stifled by tightened access to credit and weak business sentiment. Regardless, a recovering economy provided industry operators with access to clients that would otherwise have chosen more expensive alternatives. Over the five years to 2015, industry revenue is estimated to increase.
According to IBISWorld Industry Analyst Edward Rivera, “Between 2011 and 2013, the industry experienced high levels of growth as the total value of national corporate profit swelled.” In the first two years of this period, demand for professional, scientific and technical services reached their highest growth rates, aiding industry revenue growth. The result was a rising number of companies entering the growing Serviced Office Leasing industry, benefiting from renewed demand brought on by a rising number of businesses, corporate profit and workspace trends. Over the five years to 2015, the number of industry companies is estimated to grow.
“Over the five years to 2020, industry revenue is projected to increase, benefiting from a changing workforce that includes more telecommuters who rely on virtual office spaces and conference rooms,” says Rivera. However, future growth may be hampered by increasing levels of competition. Industry companies face significant external competition from substitute office spaces, including traditional office space, home offices, business suites in hotels and airports and “third place” work areas, such as coffee shops.
For more information, visit IBISWorld’s Serviced Office Leasing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Establishments in this industry rent or lease fully furnished office space to businesses on a part-time or as-needed basis to a myriad of businesses, ranging from start-ups to Fortune 500 companies. The industry also provides virtual office and conference room leasing options. Companies that provide conventional commercial leasing options are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.