The United Kingdom Market is one of the largest and most mature for the office space and commercial buildings sector worldwide. Experts believe that the UK market alone accounts for over a third of the worldwide serviced office footprint. The sector has also traditionally been one of the largest buyers of FM services.
The unprecedented experience of the first two years of this decade has required organizations to adapt fast and pivot quickly to support their workforce through a global public health pandemic. In the last two years we have witnessed a rapid acceleration of many trends that include: the large-scale adoption of dynamic and flexible working, the growth of workplace technologies to support CRE (corporate real estate) functions in managing these new workstyles, and increased investment to bolster environmental sustainability goals.
As per a recent survey conducted on the future of work and workplaces, some important aspects related to how the work environment will shape up in the near future were uncovered. The key insights included:
- Hybrid working is here to stay and calls for the rejuvenation of the office.
- In the near term, investing in quality space will be a greater priority than expanding total footprint.
- Environmental and social aspirations will shape future portfolio transformation
- CRE functions need to double down on intelligent investments
- Real Estate needs are becoming more sophisticated and complex
Some of the findings of the survey are given as under:
Commercial Buildings & Office Market in UK- An FM Perspective
The commercial buildings & offices sector commands a Total Contract Value (TCV) in excess of £16.6 billion in the UK Market as per our database. The sector commands more than 1,050 contracts with some large contracts especially for Integrated FM services. The sector is serviced by a diverse group of suppliers with some large Global and domestic Organizations. The Sector is predominantly owned by private companies.
A look at the services dissection based on the contract data that Baachu maintains gives a clear idea of which services are most sought after by this sector. The integrated FM services which come with an ease of dealing with a single supplier for all FM needs are the top choice of the buyers with contracts worth more than £8.9 Billion comprising almost 50% of the total contract value.
Service Classification of Commercial Buildings & Office Market in UK
Among the top FM providers to Commercial Buildings & Offices Sector, Mitie with Interserve business also part of its portfolio is one of the largest Suppliers. Most of the Key suppliers to this sector are large FM players who are into providing Multiple FM services
Apart from serving the Commercial Buildings & Offices Sector, the overall FM market in UK is one of the largest markets in Europe in terms of maturity and sophistication. The market is highly competitive owing to the presence of several organized players and strong presence of top global companies, such as Mitie, ISS, Sodexo, CBRE, JLL among others. It is a large market with some estimates putting the annual revenues in the vicinity of 40-45 Billion USD. As per Baachu Database, however, the total contract value remains in the range of £110 Billion for Contracts with terms ranging from one to 10 Years on an average. To have a detailed view of the UK FM Market with complete sector & services breakdown , please download our comprehensive report here.
This report is unique for its treatment of the growth aspect being based on the real contracts and their value. The report complements similar report from Frost & Sullivan as that report gives a glimpse of future growth based on revenues while Baachu has used Total Contract Value as the basis.
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Upcoming:
The Commercial Buildings & Offices Sector in the UK is changing post the pandemic which had a deep impact on the consumption of office space. What is in store for the way we work – will it be the same as before the pandemic hit us or will it change for ever with the introduction of hybrid work culture and virtual meetings. Get the answers to all these questions and more in our upcoming webinar “UK Facilities Management Market Analysis : Commercial Building & Offices sector Market”. The webinar will also have a detailed view of the future business opportunities for FM suppliers from this sector.
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