A growth market...
There is an increasing demand for serviced office space.
Serviced offices are usually better value than traditional offices (confirmed by the Institute of Purchasing and Supply).
They also provide flexibility to expand or contract, short or long term tenure, and the convenience of onsite services.
In fact, companies are increasingly recognising that office space is not a core function and can be better managed by being outsourced.
Rising demand has allowed MLS to grow quickly. This has particularly been evident in London’s West End and the City, where MLS has a strong presence.
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| UK businesses employing 1-20 people | UK businesses employing less than 10 |
Unlike other large operators in the serviced office market, MLS specifically targets SMEs, which account for 58% of private sector employment in the UK.
A typical client occupies just four to six workstations. The SME market is resilient in the face of continuously changing conditions, providing a stable customer base for MLS.
Of the 4.2m businesses in the UK, 1.7m employ between 1 and 20 people with 85% having less than 10 employees - a key target market for the Group.
Due to the diverse range of accommodation offered by MLS and the extensive range of additional services, we are successful in attracting a huge variety of companies and organisations from many sectors.
Serviced offices have also proven to be a popular choice for satellite project teams, who need a short-term fully functioning office facility, with access to the additional services that MLS provide.
It is estimated that there are 2,500 business centres in the UK, the majority of which are small family owned operations. This has provided MLS with the opportunity to grow by acquisition, alongside their organic growth.
Having established a strong market presence in the UK, MLS is now expanding into specific countries with fast growing economies and longer term high profit potential. Pilot projects in Chennai, India and Shanghai, China are now part of the Group portfolio.
MARKET FACTS:
The managed offices market in the UK is fragmented; it constitutes about 200,000 workstations.
There are three dominant players, Regus, MLS and MWB.
After difficulties following the dot com collapse and the post 9-11 slowdown, the market has recovered strongly and demand is increasing again.
