Escolar Documentos
Profissional Documentos
Cultura Documentos
2014
The great rise of serviced offices in the City and East London
attributed to by the entrepreneurialism of DAMIT SMEs
Contents
2.0 Introduction
4.0 Hypothesis
11
6.1
6.2
6.3
6.4
6.5
6.6
6.7
Data Collection
Primary Research
Questionnaire
Interview
Secondary Research
Ethics
Contingency Plan
11
11
12
13
15
15
16
7.0
17
8.0
List of references
18
9.0
Appendix 1, 2, 3, 4
Abbreviations
DAMIT = Design, Advertising, Marketing & PR, Media, Internet, Technology &
Telecoms company (Farebrother, 2014)
SME = Small medium sized enterprise (Blackburn et al, 2013)
TMT = Technology Media Telecom
CAPEX = Capital expenditures
VAT = Value added tax
PAYE = Pay as you earn
2.0 Introduction
The Government is committed to ensuring that the UK has one of the most
competitive economies in the world, underpinned by a strong competition regime to
enforce the law and tackle uncompetitive behaviour that stifles innovation as implied by
Knight Frank (2014) and (Department for Business Innovation & Skills, 2014).
The Department for Business, Innovation & Skills and Harvey (2012) categorises SMEs
into three sub sections according to size as follows
Micro: as 1- 9 employees
Philips (2014) argued that TMT is not a reasonable way to define companies, which fall
into this umbrella term and that the term DAMIT is more a suitable way to express the
range of firms represented.
The Silicon Roundabout is a term associated with enterprises located in an area around
the Old Street Roundabout in London UK as expressed by O'Mara (2010), it is home to
a concentration of more than 100 high-tech firms. This is due to a focused interest from
David Cameron and companies such as Google situating itself nearby. The area has
recently transformed into what is now known as "The East London Tech City" stated by
Nathan (2011) reaching as far as Stratford as described by (Experian, 2012).
Since the credit crisis in 2007 commercial office tenants are cautious about singing longterm office leases as mentioned by (Blackburn et al, 2013) due to uncertainly and a
volatile market. This has lead to the increase in demand as researched by Vrensen and
Kuljanin (2014) for high quality office space on shorter leases.
During this time serviced offices has seen a massive increase in demand due to the ever
changing needs of businesses as implied by BNP PARIBAS Real Estate (2014), these
offices are perfect for small to medium sized enterprises as explained by (Pratt and
Hutton, 2013). Advantages of a serviced office are the flexibility, collaborative
workspaces combined with the range of services it can provide inspire energy,
opportunity and optimism as explored by (Foord, 2013).
Explain and define DAMIT SMEs and what other companies are operating in
the market place
Analyse why DAMIT SMEs choose serviced office space in the City and East
London
Assess weather DAMIT SMEs are dominating the demand/ supply of serviced
office space,
Identify what it is that serviced offices provide in conjunction with the benefits
to an investor sub letting their premises to a serviced office provider
The initial A3 poster plan for this research can be found in Appendix 1 p.22
Serviced offices give a DAMIT SME the chance to work in a prestigious area, take
advantage of the range of facilities provided and sign up to shorter leases these are a few
reasons driving the DAMIT SME boom as expressed by Hood (2013) and (Foord, 2013).
This has put a massive strain on the supply of office space leading to companies locating
to fringe areas as research by (Experian, 2012).
Different areas in London attract various tenants e.g. Shoreditch with a large
concentration of DAMIT companies, the city of London with financial corporations and
the Westend with retail led tenants. Due to the demand out growing supply in terms of
available office space, these traditional locations have seen the rise to areas such as
Clerkenwell, Mid Town and Kings Cross to be explored as new alternative locations for
the aforementioned companies. Thus examining as to why factors such as specific
locations or lease lengths are influencing demand as expressed by (Savills, 2014).
According to Instant (2011) and Harvey (2012) serviced office tenants in London are
attracted by; no hidden office expenses, Immediate occupation available, flexible office
rental terms, simple contract, no need to pay office rent quarterly in advance and no
CAPEX is required
McAllister (2001) discussed the downside to serviced offices in terms of valuation issues,
which will be explored further in depth in the main proposal. The benefit to the
freeholder sub letting its premises will be investigated to see if they are receiving a better
income from using one of these providers as a tenant.
The Freeholder e.g. Regus would be the main tenant who in turn sublets the building to
a serviced office tenant as implied by (Regus, 2012) This could be a good use for Second
hand office buildings in a regenerating area such as east London by utilising second hand
building stock and using it to provide an income. The freeholders motive in connection
with the following objective is receiving a constant income above market value by
owning a building under multiple occupation. The Costs associated with running the
building should be considered although the service generates income for building
owners.
The occupier base is as varied as the City, but dominated by three sectors; TMT (24%),
Finance (19%) and Legal (14%). TMT and Other Professional take-up activity has been
especially strong in the last five years as stated by DTZ and Jones Lang LaSalle, (2014).
4.0
Hypothesis
The following hypothesis is a statement, which should potentially validate by the research
that is tested with through the use of primary and secondary research.
DAMIT SMEs are dominating the demand for serviced offices in the City and
East London
The main aim of this research is focus on the two main areas of DAMIT SMEs and the
geographical perimeters, which have been set
5.0
Research objectives
The following 5 Research objectives underpin the whole structure of the dissertation,
with the literature review addressing the rationale this in turn relates to the
aforementioned hypothesis to determine weather they are valid and provable.
1. Investigate the requirements of a DAMIT SME serviced office tenant
2. Discussing how DAMIT SME companies are influencing the market
3. The current situation of Supply and demand in the serviced office market.
4. Analyzing the drivers behind the increase in demand for serviced office
space in London from basic to luxury.
5. Examine how freeholders will benefit from serviced office providers (from
the investors point of view)
The aim of the research is to set out weather the hypothesis is true and any other
reasons, which support the title as defined by (Saunders, Lewis and Thornville 2012).
The objectives have been further broken down into subsections, which will be expanded
in the main dissertation document.
1. Investigate the requirements of a DAMIT SME serviced office tenant
Leasing are they willing to pay more and do they prefer short leases?
Analyse weather DAMIT SMEs have grown in the last 5 years and how much by
and weather different sectors have grown more than others.
How factors such as the economy, taxation ( such as VAT, PAYE, national
insurance and business rates) and regulations as investigated by SME, business
borough meter (2014) are impacting the market.
3. The current situation of Supply and demand in the serviced office market.
The statistics representing the current situation of supply and demand in the
designated research area
Is there a Lack of supply in the core areas causing these companies to locate to
fringe areas of London.
How much space is available out there an who is actually bidding for it
4. Analyzing the drivers behind the increase in demand for serviced office space
in London from basic to luxury.
Who are the main serviced office providers for DAMIT SMEs
5. Examine how freeholders will benefit from serviced office providers (from the
investors point of view)
10
Contact serviced office providers and DAMIT SMEs get their agreement, draft
questions to them
Telephone or face to face contact to get their agreement whilst drafting questions
to them
The initial aim will be to obtain 6 10 interviews with various subjects who are
relevant to the topic area.
11
The following table highlights the pros and cons of various research methods
12
Set the questions under sections, that address each of those objectives so when I
pull it together it will be easier to analyse, by objective , what did my lit review say
, what did my interview say
13
To make this research more valid individuals who are higher up in the chosen companies
will be contacted first. If this doesnt work less senior members of staff will be contacted,
the following hierarchy of staff will be attempted to input into this study.
1. Managing Director
2. Director
3. Management staff
4. Research Team
The following will list names of people in serviced office providers and DAMIT SMEs
who are gatekeepers of the information relevant to justify the research:
Company: Regus
Name : Rob Strachan, Dave Fensom, Marta Dahlia
Position Managing Director UK, General Manager, Hr Adviser
Contact: LinkedIn
Company: MWB Business exchange
Name : Cristina Tumino
Position: General manager
Contact: Linkedin
Company: Citibase - lentabusinesscentres
Name: Kasia J
Position: Centre Assistant
Contact: linkedin
Company: Shoreditch Works
Name: Jack Martin
Position: Director of Strategic Operations
Contact: Twitter
Company: The office group
Name: Head office
Position: Not applicable
Contact: 22@theofficegroup.co.uk
Company: Search for serviced offices
Name: Jamie Robotkin
Position: Director
Contact:Linkedin
14
15
The ups and downs of data collection. Enjoyment, loneliness and obsession.
6.7 Contingency
The questionnaire and interviews may receive a limited response, in this case a
contingency plan is in place, in this case the research conclusion will have to rely on
secondary sources to come to the hypothesised outcome.
The questionnaires and interviews may not be successful in obtaining the relevant quota
of information to justify the research e.g. 200 could get sent out receiving a 10%
response, in this case secondary research will have to be used to try and prove the
validity of the hypothesis. In this case the research conclusion will have to rely on
secondary sources to come to a valid conclusion.
16
Why not look as any company that could is an SMEs? to narrow the scope of
the topic and focus on specifically DAMIT SMEs.
Controlling the amount of variables, mentioning many different geographic areas will
distort the findings in the conclusion. This is why the location for this research has been
set to East London and the City of London. it should be considered that the Google
European Headquarters has been Located In Kings Cross North London, this is a driver
behind the take up in serviced office space by DAMIT SMEs. The impact that this could
have on DAMIT SMEs who are looking to alternative locations to pursue their growth
potential.
Time is a major factor that should be considered in this research as the project has a
deadline. To prepare for this a schedule should be produced to plan, how much time
should be spent on each specific section of the dissertation. See Appendix 4 p.26
17
8.0 References
Atkin, B. and Brooks, A. (2009). Total facilities management. Chichester, U.K.: WileyBlackwell.
Blackburn, R., Hart, M. and Wainwright, T. (2013). Small business performance:
business, strategy and owner manager characteristics. Journal of Small Business and
Enterprise Development, 20(1), pp.8-27.
BNP PARIBAS Real Estate, (2014). MANAGED OFFICE SOLUTIONS. White
paper. London: BNP PARIBAS Real Estate, p.3.
Booty, F. (2009). Facilities management handbook. Oxford: ButterworthHeinemann.
Brchner, J., Olsson, H. and Sinik, D. (2004). Serviced offices: owner capabilities for
FM coordination. Facilities, 22(3/4), pp.74-78.
Cabinet Office, (2013). Making Government business more accessible to SMEs.
London: Gov.
Citibase, (2014). Annual Review. London: Citibase. pp55 - 61
Cityoflondon.gov.uk, (2014). SME growth popularises serviced offices - 2014 - City of
London. [online] Available at: http://www.cityoflondon.gov.uk/about-the-city/what-wedo/media-centre/news-releases/2014/Pages/sme-growth-popularises-servicedoffices.aspx [Accessed 29 Nov. 2014].
Department for Business Innovation & Skills, (2014). SME BUSINESS
BAROMETER. London: Gov. pp112-116
18
Department for Business Innovation & Skills, (2014). Tech City: Future Fifty.
London: Gov. pp 9 -10
Dilon,J.T (1990). The Practice Of Questioning. London and New York,NY: Routledge
DTZ and Jones Lang LaSalle, (2014). City Offices Getting the Balance Right.
London: City of London.
Experian, (2012). Characteristics of SMEs and Social enterprises around tech city.
London: City of London Corporation.
Farebrother, (2014). The London Midtown Office & Retail Markets Q3 2014. London:
Farebrother, p.13.
Foord, J. (2013). The new boomtown? Creative city to Tech City in east London. Cities,
33, pp.51-60.
Harvey, B. (2012). Your Complete Guide to Serviced Offices. Bristol: Colston Office
centre.
Hirst, C. (2011). Ethics and Professional Conduct for Chartered Surveyors. Coventry:
Rics Books.
HM Treasury, (2014). SME Credit Data. London: HM Treasury. pp 201 - 104
Hood, D. (2013). Competitive SME. London: Kogan Page. pp 72 -78
Instant, (2011). Global Serviced Office Review 2011. London: Instant. pp 45 - 64
Jones Lang Laselle, (2014). The Central London Market Q1 2014. London: Jones Lang
Laselle.
19
20
Ramidus Consulting Limited, (2014). Serviced Offices and Agile Occupiers in the
City of London. London: City of London Corporation. pp 92 -115
Regus, (2012). Regus plc Annual Report and Accounts. London: Pureprint Group. p 49
Saunders, M., Lewis, P. and Thornhill, A. (2012). Research methods for business
students. Harlow, England: Pearson.
Savills, (2014). City Office Market Watch. London: Savills.p 2 -3
Sayce, S., Eccles, T. and Plimmer, F. (2014). Handbook on Research Methods.
London: Kingston University.
Taylor. M ,and Murphy. A (2004) "SMEs and e business", Journal of Small Business
and Enterprise Development, Vol. 11 Iss: 3, pp.280 289
Vrensen, H. and Kuljanin, M. (2014). Office: TMT explosion. [online] IPRE.
Available at:http://realestate.ipe.com/markets-/sectors/office/office-tmt
explosion/10003345.article [Accessed 29 Nov. 2014].
Wisker, G. (2009). The undergraduate research handbook. Houndmills, Basingstoke,
Hampshire [England]: Palgrave Macmillan. Pp 72 - 83
21
Appendix 1 Poster
22
23
Appendix 3 Ethics
ETHICAL REVIEW OF DIPLOMA/BSc RESEARCH PROJECTS INVOLVING
HUMAN SUBJECTS
FORM REO1
Student:
Project Supervisor:
Degree Programme:
Year of Study:
Project Title:
Start Date:
Completion Date:
Aims/Objectives of Project:
Please give this form to your Supervisor before completing form RE02 together.
24
FORM REO2
Name of student
Names of students
Is partnership/collaboration with
another institution involved?
Name of institution
Sources of risk
Actions taken
Approaches taken
Brief details
10
Brief details
11
Actions taken
12
Techniques involved
13
Brief details
14
Source of guidelines
15
Actions taken
25
Objectives
Dissertation Proposal lectures
Relevant reading
Dissertation proposal
Hand in dissertation proposal
Addition relevant reading
Make layout
Chapter 1:Introduction
Chapter 2:Literature Review
Interviews
Questionairres
Chapter 3:Primary Research
Writing Chapter 4:Conclusion
Proof reading dissertation
Referencing / Bibliography
Hand in date dissertation
26
Acknowledgments
27