Last night, our client, leading serviced office provider, Office Space in Town launched a groundbreaking report on the UK serviced office sector at a drinks reception held on the rooftop terrace of their recently completed Monument offices.
With spectacular views of the City and along the Thames, professionals from across the commercial property industry gathered to get a glimpse of the report for the first time. The evening saw an illuminating panel discussion between experts from across the serviced office sector, banking, investment and the valuation industry – all in agreement that serviced offices were an asset class with untapped potential.
The report, Serviced offices: a new asset class, predicts that the UK serviced office industry could be worth £62bn on modest projections and £126bn on more optimistic forecasts by 2025, however, highlights that the sector is potentially undervalued by close to 20% or £3bn currently. Without existing guidance in the RICS Red Book for the valuation of serviced offices, the report put forward for the first time a pioneering dedicated serviced office valuation model to take account of their different income streams and speed their emergence as a new property asset class.