Falling Vacancy Rates Sparks Interest In Office Investment

Falling vacancy rates, lack of new builds and a rising number of companies looking

for serviced office facilities has created a new buzz around the UK office investment sector.

London, by far, has the largest and most developed serviced office market not only in the UK, but in the world, and commands 8% of the global market share.

With the concept of serviced office investment widely known throughout the country, the UK has a very established market and dominates 36% of the global market share. The familiarity of the structure of the sector has enabled investors to benefit from the flourishing market, with many investors benefitting from the high demand for flexible work spaces.

And it seems that the serviced office sector is growing from strength to strength.

According to industry body, Savills, the overall UK serviced office vacancy rate has fallen to 9.4% - the lowest it has been since reaching its peak of 15.3% in 2009. In 2011, the current availability in many cities across the UK continued to decrease, with average years of supply over all UK cities standing at 2.9 years.

This combined with a lack of development of new offices over the past few years, had led to a significant storage of serviced office space in the UK, with industry insiders tipping the office investment market to flourish once the economic recovery starts.

Stabilising since the economic downturn, prime yields have levelled out over the past 12 months, with the average prime yield at 5.9% after peaking at 7% in March 2009.

Unlike many other property investments, the serviced office investment sector has flourished throughout the recession, as more businesses look to rent flexible working spaces with varying contracts.

Newly launched in the UK, Experience International is offering Individual Serviced Office Suites located in a newly refurbished purpose built flexible office facility.

Managed by an experience management company, the units are available 24.90% below RICS valuation and offer investors double-digit returns guaranteed for the first 2 years.

With returns expected to reach 12% by years 3 and 4, investors can secure units in the new development and can rest assure that there is a defined exit strategy in place from year 3 onwards.

by: Eddiebattle7

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