Mark Dixon, founder and CEO of the UK’s domineering serviced office operator Regus Plc, has declared that town centre and suburban office space locations hold the key to ensuring occupancy in the future.
In an interview with the Financial Times, Dixon likened the continued construction of office space buildings in central London to the Cotton Mills erected shortly before the fall of the cotton industry. Dixon foresees that much of the office space coming onto the market over the next couple of years will fail to find occupiers.
A simple case of oversupply versus demand is one of the main reasons for this, according to the entrepreneur, as companies look to cut overheads and avoid renting wasted space by reducing office space and on site staff. Town centre and suburban locations will be the most sought-after areas in coming years as companies encourage home working and avoid costly commuting.
It will be the out-of-town locations which will be in trouble according to Dixon, who is now choosing to stay away from business park settings with Regus. The leading UK-based serviced office operator is opting instead for areas that offer the convenience of a centre of town location or proximity to suburban housing areas.
Source: Financial Times, Oct 26 2009
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