Giles Fuchs in EG: Time to decide how to value flex space
How do you value flexible workspace?
With traditional CRE landlords eager to tap into the robust post-pandemic recovery expected of the flexible workspace market, it is unsurprising to see many of them enter joint ventures with seasoned specialists in operating serviced offices. More alarming, however, is the continued lack of a consistent valuation model for this type of offering, which must be addressed for the sector to realise its full potential.
Writing for leading property title EG, OSiT CEO Giles Fuchs outlines the scale of the issue facing landlords and operators whose offerings could be significantly undervalued, while also suggesting a solution based on years of experience in the sector.
Indeed, although the flex space market has been projected to reach a valuation between £62bn and £126bn by 2025, recent research suggests that these figures could represent an undervaluation of as much as 20%. Clearly, for landlords and operators to see the full benefits of their joint ventures, they require a reliable valuation system which will prevented them from being short-changed.
Giles proposes a valuation model pioneered by OSiT and honed over years of operating offices with a full suite of services available to clients. Only a model which takes each of these services into account will accurately reflect the value of assets in this extremely exciting sector.
You can 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.