More Profitability Ahead, Say Business Center Operators
A New Study by the Global Workspace Association Says Technology Advancements and Post-Recession Office Strategies Are Spurring Growth in the Workspace-as-a-Service Industry
IRVINE, CA, Oct 31, 2012 (MARKETWIRE via COMTEX) -- A new study released by the Global Workspace Association (GWA) says the majority of its members -- comprised of serviced office business center owners, virtual office and coworking operators, and other workspace-as-a-service providers -- reported solid performances in 2011, and most expect improved profitability through at least 2014.
"In contrast to the traditional office space sector, total revenues among our members grew modestly last year, and profits as a percentage of total revenue grew slightly year over year, too," said James C. Baughman, Jr., GWA president. "Office space strategies and needs among small and mid-sized businesses, and even large corporations are evolving, and workspace-as-a-service industry providers are increasingly becoming part of the mix."
The survey's results reveal a stable industry exhibiting growth mostly in new business segments. Highlights included the following:
-- Seventy-three percent of GWA members said they expect profits to
improve through 2014; 79% expect profits to improve beyond 2014.
-- Overall, total revenue growth was positive, up 2.1 percent among all
who responded to the survey.
-- Occupancy grew in almost every category, with overall occupancy
increasing for all respondents by 3.3 percent.
-- Virtual office revenue grew 6.8 percent, and meeting room or
day-office revenue soared 17.2 percent in the same period.
-- Reversing a trend, smaller workspace-as-a-service offerings were more
profitable for GWA members than larger ones in 2011. Facilities with
15,000 square feet or less fared better than those ranging from 15,000
square feet to 20,000 square feet.
-- Occupancy and profit as a percentage of revenue were highest in the
United States, while Canada had higher total revenue per available
This GWA Financial Study is organized as a set of easily referenced industry performance tables. This data is based on surveys completed by 69 companies representing 396 centers. In 2011, 80 percent of respondents were office business centers, 6 percent were coworking and virtual office operators, and 14 percent were hybrids representing a mix of meeting space and coworking offerings. Fourteen percent of the centers reporting were outside the United States.
The worldwide workspace-as-a-service industry includes serviced office business centers, virtual offices, coworking spaces and a variety of conferencing centers. Globally, there are more than 8,000 such facilities, according to the GWA.
About the GWA The Global Workspace Association (GWA) is an international, nonprofit trade association representing serviced office business centers, coworking facilities, mobile workforce service providers, virtual office operators, managers, support staff and third-party vendors engaged in delivering on-demand, variable-cost, fully serviced office space on flexible terms by the hour, day, week, month or year. For more information about GWA, please visit www.globalworkspace.org or contact Executive Director Richard Meyers at (949) 260-9023 or at firstname.lastname@example.org.
Jones Public Relations