Valuing flexible offices in the UK
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Image: Awareness-raising campaign on illegal short-term rentals, Ajuntament de Barcelona. (c) Claire Colomb, 2017).
Citation: Michael White and Neil Dunse (2023) Valuing Flexible Offices in the UK.
London: Property Research Trust. DOI: https://doi.org/10.52915/JIRF1743 Keywords: Office space growth, flexible space, space providers, standard offices. |
Summary:
The provision of flexible office space grown significantly across the globe and has established itself within key markets, including central London, UK regional centres, the US and Europe. No longer confined to attracting only start-ups, it is increasingly considered a part of corporate office occupation that reflects changes in business, labour markets, and the wider economy. Landlords increasingly see flexible space as a means of attracting tenants to their buildings, as well as helping them retain occupiers and minimise vacancies amid new market trends. Flexible space includes a variety of types, all of which obviate leases and provide for short-term adjustments by occupiers. Occupiers benefit from a menu of services without facing overhead costs. The key issue is how this type of office is to be valued. Our report outlines developments in the flexible office space sector from older and more recent literature, examines the definitions of flexible space, the growth of and changes in the sector, the issues as seen by flexible space providers and what issues there are for valuation. The sector remains relatively opaque with valuation information more limited than for standard offices. |
Authors
Michael White is Professor Professor of Real Estate Economics at the Centre of the Built Environment, Nottingham Trent University. His research covers economic analysis of residential and commercial property markets, real estate investment, market modelling, energy performance and mortgage finance. He is currently executive director of the European Real Estate Society.
Neil Dunse is Professor of Urban Studies at The Urban Institute of Heriot-Watt University, Edinburgh. He has research interests in real estate markets and housing. These include commercial and residential property market analysis, dynamics of property markets, real estate valuation and appraisal and assessing the impact of public policy on land and property values.
Neil Dunse is Professor of Urban Studies at The Urban Institute of Heriot-Watt University, Edinburgh. He has research interests in real estate markets and housing. These include commercial and residential property market analysis, dynamics of property markets, real estate valuation and appraisal and assessing the impact of public policy on land and property values.