
This is according to the latest Industry Survey 2016 by MatchOffice, which each year interviews hundreds of business centres across Europe about their experiences and prospects. This year, more than 700 business centres from 49 countries participated in the survey.
From small creative agencies to modern corporate business centers, shared offices have never been more popular than in the first quarter of 2016. Around 80% of business centers have maintained or even increased their already high occupancy rates of last year. More than 60% have an occupancy rate of more than 80% and a third even more than 90%.
Increasing demand
“Overall, our research confirms my personal impressions when I visit business centres across Europe,” says MatchOffice CEO Jakob Dalhoff.
“The real estate sector has developed very positively in recent years and the number of business centers has increased significantly. More than ever, companies are renting a business center and we expect this trend to strengthen in the rest of 2016 and beyond,” says Jakob Dalhoff.
The MatchOffice study also shows that half of European business centres were able to maintain their price level compared to last year. A third of business centres were even able to increase their prices.
“Many business centers were able to increase their rents. This shows that in many cities, and especially capitals, the demand for business centers is higher than the supply. In addition, many business centers are planning to expand their supply or even open new centers,” Dalhoff said.
A new optimism
The research shows that 23% of European business centres expect to increase their prices in the next 6 months. In addition, around 60% of European business centres express positive expectations for the rest of 2016.
“It is a fact that business centers have strengthened their market position. In the last 10 years, the number of business centers in Europe has doubled. Many large and modern companies are a lot more mobile and flexible than a few years ago and the business center concept plays into this development,” says Dalhoff.
“For many start-ups, their business centers are attractive. Start-ups generally do not want to and cannot commit to long-term leases. At the same time, they lack the necessary capital to invest in inventory and IT infrastructure. Business centers are interesting because they work with flexible lease terms and because the offices are ready for use. This allows start-ups to fully focus on their core activities. I also expect that more and more start-ups will opt for a business center in the future. How strong the growth will be in the coming years is difficult to predict, but personally I expect a significant increase,” says Dalhoff.
The Netherlands as a pioneer
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The MatchOffice Industry Survey 2016 focuses mainly on Western European countries, including the Netherlands, Belgium and Germany. The main results of this year's survey are:
• The occupancy rate in the Netherlands is more than 90%, well above the European average.
• The capitals of many European countries in particular show the highest occupancy rates.
• In general, there are positive expectations about both future occupancy rates and price levels.
Read the full version of the MatchOffice Industry Survey 2016 here