Serviced Office Leasing in the US - Industry Market Research Report

Business as Usual: Growth in Telecommuting and Nomadic Work Styles is Expected to Support Industry Growth

Serviced office leasing servicers provide businesses with workspace renting and leasing options, including fully furnished offices, virtual offices and conference and meeting rooms. Its end users range from start-ups to Fortune 500 companies, particularly those within the digital services sectors. Prior to 2020, operators such as WeWork benefited from the rising cultural popularity of coworking. However, COVID-19 adversely affected servicers' performance in 2020 as social distancing concerns and mass unemployment forced establishment closures. Nonetheless, due to strong performance early in the period, revenue has been growing at a CAGR of 4.2% over the past five years, and is expected to reach $3.6 billion through the end of 2023. This includes an expected spike of 3.9% in 2023 alone. Serviced office lessors rent or lease fully furnished office space to businesses on a part-time or as-needed basis to a myriad of businesses, ranging from start-ups to Fortune 500 companies. Lessors also provides virtual office and conference room leasing options. Companies that provide conventional commercial leasing options are excluded from this industry. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.