Business Centre Association - General - Long Term Growth For Managed Business Space
Date: 02 Mar 2006
Recent new centre openings, acquisitions and expansion announcements in the managed business space sector reveal that sector is in buoyant mood for 2006, claims the Business Centre Association (bca).
With more than 150,000 workstations being available nationwide at the end of 2005 and an estimated 0.8% of all commercial property in the UK now being available as flexible workspace bca chairman, Richard Boon, believes that the industry has now matured to the point where it has become a mainstream option for an increasing number of occupiers.
"This is an industry that's moving with the times and offers a 21st century solution to occupiers needs," comments Richard Boon. "Most of the major players in the industry have expanded their portfolios in the past 12 months and as a result many of the smaller centre operators now also have plans to expand substantially over the next two to three years.
"MLS expanded to 77 centres, with integration of Acacia's 17 central London centres, and now ranks second in size to Regus, while MWB expanded its portfolio to 46 with the acquisition of 13 regional centres from City Executive Centres. Also on the expansion trail, Evans Easyspace kick-started 2006 with the announcement of a £35 million spending spree on 5 new centres which will bring its portfolio to 35 during the year.
"One a slightly smaller scale, Abbey Business Centres opened its 10th centre in the 'Gherkin' in London's St. Mary Axe, while KBC opened two centres in Uxbridge and one in Marlow and Orega announced a new centre in Slough as a result of signing a joint venture agreement with Threadneedle Property Investments, on behalf of Zurich Assurance. Also on a positive note, Bizspace entered into an agreement with Electra Partners to invest in new managed workspace facilities, while Business Environment, now operating at virtually 100%, has announced plans to double the size of its business over the next five years.
"The buoyant nature of the industry has now seen the return of major investors while the number of joint ventures and management agreements in the sector is steadily increasing as major property owners look favourably at what managed business space can do for them. As a result, most of the bca's 600 member centres are quietly confident heading into 2006 and for many the mood of optimism will be translated into expanded portfolios."
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