Operators of Shanghai serviced offices have been hit as hard as most landlords by the economic fall-out of last year. In some cases, even more so, as those expanding quickly locked into rents on their head leases, which are now significantly in excess of what they can expect to make a profit on, when providing services to their own occupiers. In addition, the 18-month period prior to the financial crisis of autumn 2008, saw an unprecedented expansion of serviced office facilities across Shanghai, with over 55 now in operation up from a handful of Shanghai serviced offices in 2005.
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| One of many new shiny towers |
For those not versed in industry terminology, a serviced office or business centre, is generally taken to be a facility which is provided fully furnished, equipped and supported by in-house staff who manage anything from reception and telephone answering to IT. Shanghai serviced offices tend to be located in the larger premium Grade-A office buildings, where they typically provide offices for 1-50 persons, depending on individual requirements. Offering a low cost and virtual CAPEX free route to starting your office in Shanghai.
Key factors in determining whether Shanghai serviced offices are something you should consider, include the following considerations.
- The number of staff
It is always difficult to predict staff levels for a new operation. However, if you are going to be in the 2-8 range within the first 12-months of operation, serviced offices should definitely be considered.
- Speed & Ease of setup
When starting a new operation in Shanghai, legal paperwork, HR issues and general business considerations make for a challenging time. Unless you have a full team to manage and support on these various areas, Shanghai serviced offices offer a stress reduced route to fast and efficient company establishment.
- Client & Staff perceptions
Gone are the days when serviced offices were considered a ¡®temporary¡¯ establishment which might be detrimental to a company¡¯s image. Being located in a range of buildings from Premium Grade-A office towers through to historic mansions, they provide a depth of choice to suit most corporate situations.
- Value for money
Now is the time to secure excellent value for money deals with Shanghai serviced office operators. Rental rates have reduced by approximately 50% from their highs of 2-years ago. Operators are being particularly aggressive is trying to attract new tenants. So there are some very good deals out there offering genuine flexibility and savings on conventional space.
It¡¯s not just about the high rises
Belfrey Partners work with all the major shanghai serviced office operators. Over the years, we have developed close working partnerships which ensure we are able to provide a best in service level of support and advice to our clients. This is particularly important now the range of available offerings has become so broad: to ensure our clients are assisted first by being introduced to locations which actually suit their business type and subsequently by being advised on the merits and value propositions of those locations against other alternatives.
