A consistent valuation model for flex: Giles Fuchs in Property Week
How can we rectify the valuation problem in flex space?
In a recent comment piece for Property Week, Giles Fuchs, CEO at OSiT, discusses his thoughts on why a dedicated valuation model is needed for flex and serviced office space and how the lack of such a framework affects the sector.
While predictions estimate that the value of the market could reach between £62bn and £126bn by 2025, the sector is thought to be undervalued by as much as 20% due to the use of conventional office valuation methods. Giles argues that without progress in establishing a universal model, undervaluation is likely to persist – his ‘Fuchs’ Formula’ offers a solution to this problem.
Moving forward, acquisitions and partnership deals could be set to suffer, in turn impacting the recovery of the UK’s CRE sector. In London alone, 35% of pre-pandemic office deals involved flex space operators.
So, Giles argues that denying one of the largest growth areas in the sector the standardised framework it deserves could be a great impediment to its success.
Read Giles’ thoughts in full here.
A self-confessed serial entrepreneur, Giles Fuchs, CEO of Office Space in Town, works tirelessly to create both financial and strategic opportunities for the firm. Starting his first company at just 22 years old, Giles has developed a hearty portfolio of business management expertise apparent in his leadership of OSiT. He is also a keen sportsman, which has translated into a desire to foster and maintain a brilliant team ethos at each of OSiT’s centres.