Date published: 01.09.08 - not release date

MWB Business Exchange reports City looking to flexible leases post credit-crunch

Banks and financial services companies in London have made a clear move towards flexible serviced office space with a 74 per cent increase in take up over the last year, a trend that is expected to continue in the post credit-crunch environment as the sector attempts to manage its property risk, according to research published by MWB Business Exchange.

Financial services companies and banks have increased their number of workstations in Canary Wharf, the City and the West End by three quarters, when compared to this time last year, with the desire to be more flexible driving the take up throughout London.

John Spencer, Chief Executive Officer, MWB Business Exchange, commented, “The banking and finance sector is very cyclical, and we are already beginning to see the fall-out from the recent credit-crunch with major investment banks announcing staff cuts. The traditional leased office model is not helpful if you want to expand and contract with the markets, and is an unnecessary risk for companies to take on, which is why so many are choosing the more flexible and risk adverse route.”

Spencer continued, “Ten, fifteen or twenty year leases are a substantial burden on facilities managers, who must account for the use of physical space, and finance directors who have to account for the liability on the balance sheet. We fully expect the use of serviced offices to continue to rise as companies use them as part of their expansion strategy.”

The research also showed the communications industry take up of serviced office space rose by 49 per cent, Government and public sector increased by almost a third (32 per cent), IT increased by 15 per cent and recruitment by 10 per cent.

About MWB Business Exchange

MWB Business Exchange provides 5 star serviced offices under the Business Exchange brand as well as a more regionally biased mid-market offer from City Executive Centres. Business Exchange is focussed on Greater London with a majority of its centres in larger prime West End and City buildings. As well as the best locations and high quality fit out, MWB Business Exchange focuses on the client rather than MWB Business Exchange. That’s why MWB Business Exchange provides the highest staff-client ratio in the industry and constantly tries to improve the experience provided to clients. The support of friendly, enthusiastic and well–trained people enables MWB Business Exchange clients to excel and get on with running and growing their businesses.