{"id":711,"date":"2013-11-13T12:11:04","date_gmt":"2013-11-13T12:11:04","guid":{"rendered":"http:\/\/www.instantoffices.com\/blog\/?p=711"},"modified":"2022-06-25T21:07:02","modified_gmt":"2022-06-25T21:07:02","slug":"average-desk-rates-and-serviced-office-space","status":"publish","type":"post","link":"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/average-desk-rates-and-serviced-office-space\/","title":{"rendered":"Average desk rates and serviced office space"},"content":{"rendered":"<p style=\"text-align: justify;\">In part two of our <a href=\"http:\/\/www.instantoffices.com\/blog\/emerging-markets-and-serviced-office-space-1028669\/\">blog post series<\/a> following on from Patty Vozzo\u2019s Global Workspace Association presentation, we\u2019re taking a look at average desk rates around the world. Patty is Instant&#8217;s US Corporate Solutions Director, and her presentation was entitled \u201cThe Macro View: The Future Began Yesterday\u201d. The presentation focussed on the difference in rental rates across the globe and the growth of the serviced office (also referred to as \u2018executive suite\u2019) market between 2011 and 2013.<\/p>\n<h2 style=\"text-align: justify;\">The Statistics<\/h2>\n<p style=\"text-align: justify;\">We can see significant differences in average desk rates across the globe:<\/p>\n<ul style=\"text-align: justify;\">\n<li><strong>Paris<\/strong>: $1490 \/ \u00a3920<\/li>\n<li><strong>Tokyo<\/strong>: $1324 \/ \u00a3820<\/li>\n<li><strong>Hong Kong:<\/strong> $1147 \/ \u00a3710<\/li>\n<li><strong>Singapore:<\/strong> $1122 \/ \u00a3695<\/li>\n<li><strong>Beijing:<\/strong> $1090 \/ \u00a3675<\/li>\n<li><strong>London:<\/strong> $956 \/ \u00a3592<\/li>\n<li><strong>Sydney:<\/strong> $875 \/ \u00a3542<\/li>\n<li><strong>Shanghai<\/strong>: $722 \/ \u00a3447<\/li>\n<li><strong>Madrid:<\/strong> $675 \/ \u00a3418<\/li>\n<li><strong>Berlin:<\/strong> $620 \/ \u00a3384<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">*data from July 2013<\/p>\n<p style=\"text-align: justify;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-10329\" src=\"http:\/\/uk.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/graph.png\" alt=\"graph\" width=\"706\" height=\"388\" srcset=\"https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/graph.png 706w, https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/graph-300x165.png 300w\" sizes=\"(max-width: 706px) 100vw, 706px\" \/><\/p>\n<h2 style=\"text-align: justify;\">What factors affect the desk rates?<\/h2>\n<p style=\"text-align: justify;\">\u00a0Desk rates are constantly changing, and are determined by a number of factors.\u00a0 List prices are generally set based on the location and characteristics of the individual offices within the centre.\u00a0For example, corner window offices have a higher desk rate than interior offices and offices with better views or proximity to centre facilities may also be priced higher.\u00a0Of course, generally availability within the business centre will also have an impact too; newly opened centres sometimes offer fantastic introductory rates. Further, the length of lease a tenant is willing to commit to can sometimes affect the agreed rent too.<\/p>\n<h2 style=\"text-align: justify;\">Why do the rates differ between cities?<\/h2>\n<p style=\"text-align: justify;\">Commercial property rent levels and costs for running and maintaining facilities vary from market to market, and this has a large impact on desk rates.\u00a0 For example, property prices in Paris are much higher than they are in Berlin.\u00a0 Central Paris is very dense and comprised of many older period buildings.\u00a0 These in turn cost more to rent, fit out and maintain then a newer office building in a lower priced market such as Berlin.<\/p>\n<p style=\"text-align: justify;\">Supply and demand for serviced office space also has a lot to do with average desk costs; markets with very little supply and high demand have much higher rates than others where the demand is less.<\/p>\n<h2 style=\"text-align: justify;\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-10330\" src=\"http:\/\/uk.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/shutterstock_130053209.jpg\" alt=\"shutterstock_130053209\" width=\"720\" height=\"480\" srcset=\"https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/shutterstock_130053209.jpg 720w, https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/shutterstock_130053209-300x200.jpg 300w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/h2>\n<h2 style=\"text-align: justify;\">Expert insight<\/h2>\n<p style=\"text-align: justify;\">Instant\u2019s Head of Portfolio Services, Branton Moore, provided his take on desk rates and market fluctuations:<\/p>\n<p style=\"text-align: justify;\">\u201cThe rents paid by the serviced office providers certainly have an effect on the prices they must pass on to their clients, but changes in serviced office rates do not always mirror the overall property market.\u00a0During the recent global financial downturn, many serviced office providers used this as an opportunity to sign long term leases on space when the property market was low.\u00a0 This created an abundance of additional supply of serviced office space in the market that needed to be filled.\u00a0 Supply increased much faster than demand, so rates were lower.\u00a0 Centres were also eager to fill their new centres, so attractive introductory rates were also offered.<\/p>\n<p style=\"text-align: justify;\">Even when the overall property market rebounded and rents increased, serviced offices were still able to offer very attractive deals.\u00a0 For example, overall <a href=\"https:\/\/www.instantoffices.com\/en\/hk\/office-space\/hong-kong\">serviced office in Hong Kong<\/a> had a lower cost per desk than compared to fully inclusive costs for self-delivery of leased premises.\u00a0 With an increase in demand, this gap is narrowing, but there are still fantastic deals to be had in the Hong Kong serviced office market.\u201d<\/p>\n<p>If you\u2019re looking to acquire new business premises, Instant will provide advice on changing market conditions to help you take advantage of the best rates. Please get in touch to find out more!<\/p>\n<div style=\"background-color: #b3d334; padding: 20px 0;\">\n<h2 style=\"text-align: center; margin-bottom: 0;\"><strong>Looking for Office Space?<\/strong><\/h2>\n<p style=\"text-align: center; margin-top: 0;\"><span style=\"color: #000000;\">We Operate in Some of the World&#8217;s Top Cities:<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"color: #3366ff;\" href=\"https:\/\/www.instantoffices.com\/en\/gb\/serviced-office-space\/london\">London<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en-us\/us\/office-space\/new-york\">New York<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en-us\/us\/office-space\/san-francisco\">San Francisco<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/fr\/office-space\/paris\">Paris<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/sg\/office-space\/singapore\">Singapore<\/a>, <a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\/en\/hk\/office-space\/hong-kong\">Hong Kong<\/a>,<br \/>\n<a style=\"color: #3366ff;\" href=\"http:\/\/www.instantoffices.com\">Search more locations<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In part two of our blog post series following on from Patty Vozzo\u2019s Global Workspace Association presentation, we\u2019re taking a look at average desk rates around the world. Patty is Instant&#8217;s US Corporate Solutions Director, and her presentation was entitled \u201cThe Macro View: The Future Began Yesterday\u201d. The presentation focussed on the difference in rental rates across the globe and the growth of the serviced office (also referred to as \u2018executive suite\u2019) market between 2011 and 2013. The Statistics We can see significant differences in average desk rates across the globe: Paris: $1490 \/ \u00a3920 Tokyo: $1324 \/ \u00a3820 Hong Kong: $1147 \/ \u00a3710 Singapore: $1122 \/ \u00a3695 Beijing: $1090 \/ \u00a3675 London: $956 \/ \u00a3592 Sydney: $875 \/ \u00a3542 Shanghai: $722 \/ \u00a3447 Madrid: $675 \/ \u00a3418 Berlin: $620 \/ \u00a3384 *data from July 2013 What factors affect the desk rates? \u00a0Desk rates are constantly changing, and are determined by a number of factors.\u00a0 List prices are generally set based on the location and characteristics of the individual offices within the centre.\u00a0For example, corner window offices have a higher desk rate than interior offices and offices with better views or proximity to centre facilities may also be priced higher.\u00a0Of course, generally availability within the business centre will also have an impact too; newly opened centres sometimes offer fantastic introductory rates. Further, the length of lease a tenant is willing to commit to can sometimes affect the agreed rent too. Why do the rates differ between cities? Commercial property rent levels and costs for running and maintaining facilities vary from market to market, and this has a large impact on desk rates.\u00a0 For example, property prices in Paris are much higher than they are in Berlin.\u00a0 Central Paris is very dense and comprised of many older period buildings.\u00a0 These in turn cost more to rent, fit out and maintain then a newer office building in a lower priced market such as Berlin. Supply and demand for serviced office space also has a lot to do with average desk costs; markets with very little supply and high demand have much higher rates than others where the demand is less. Expert insight Instant\u2019s Head of Portfolio Services, Branton Moore, provided his take on desk rates and market fluctuations: \u201cThe rents paid by the serviced office providers certainly have an effect on the prices they must pass on to their clients, but changes in serviced office rates do not always mirror the overall property market.\u00a0During the recent global financial downturn, many serviced office providers used this as an opportunity to sign long term leases on space when the property market was low.\u00a0 This created an abundance of additional supply of serviced office space in the market that needed to be filled.\u00a0 Supply increased much faster than demand, so rates were lower.\u00a0 Centres were also eager to fill their new centres, so attractive introductory rates were also offered. Even when the overall property market rebounded and rents increased, serviced offices were still able to offer very attractive deals.\u00a0 For example, overall serviced office in Hong Kong had a lower cost per desk than compared to fully inclusive costs for self-delivery of leased premises.\u00a0 With an increase in demand, this gap is narrowing, but there are still fantastic deals to be had in the Hong Kong serviced office market.\u201d If you\u2019re looking to acquire new business premises, Instant will provide advice on changing market conditions to help you take advantage of the best rates. Please get in touch to find out more! Looking for Office Space? We Operate in Some of the World&#8217;s Top Cities: London, New York, San Francisco, Paris, Singapore, Hong Kong, Search more locations<\/p>\n","protected":false},"author":1,"featured_media":8395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[263,62,63],"class_list":["post-711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reports-and-research","tag-average-global-desk-rates","tag-desk-rates","tag-serviced-offices"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Average Global Desk Rates and Serviced Office Space - Instant Offices Blog<\/title>\n<meta name=\"description\" content=\"We\u2019re taking a look at average desk rates around the world.The piece focusses on the difference in rental rates across the globe and the growth of the serviced office market between 2011 and 2013.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/average-desk-rates-and-serviced-office-space\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Average Global Desk Rates and Serviced Office Space - Instant Offices Blog\" \/>\n<meta property=\"og:description\" content=\"We\u2019re taking a look at average desk rates around the world.The piece focusses on the difference in rental rates across the globe and the growth of the serviced office market between 2011 and 2013.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/average-desk-rates-and-serviced-office-space\/\" \/>\n<meta property=\"og:site_name\" content=\"Instant Offices Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/InstantOffices\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/InstantOffices\" \/>\n<meta property=\"article:published_time\" content=\"2013-11-13T12:11:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-25T21:07:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.instantoffices.com\/blog\/wp-content\/uploads\/2013\/11\/Average-desk-rates-and-serviced-office-space.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"430\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Instant\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/twitter.com\/Instant_Offices\" \/>\n<meta name=\"twitter:site\" content=\"@instant_offices\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Instant\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/average-desk-rates-and-serviced-office-space\/\",\"url\":\"https:\/\/www.instantoffices.com\/blog\/reports-and-research\/average-desk-rates-and-serviced-office-space\/\",\"name\":\"Average Global Desk Rates and Serviced Office Space - 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