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The power of professional financial management
fin POWER
From business and coworking-centers to ‘service offices’
A fast e...
I. Introduction & situation within ‘Office market’
II. History and evolution of # flexible workspaces
III. The business ce...
 Business & coworking-centers in Belgium :
 See list in annex
 What is a business or coworking-center ?
 Uses this as ...
INTRODUCTION
Situating within the total ‘OFFICE MARKET’
4
 Office-market in Belgium
 Market of ‘larger cities’ very well...
INTRODUCTION
Situating within the total ‘OFFICE MARKET’
5The office market is shifting towards the ‘serviced offices’
Serv...
II. HISTORY
“A market with a rich history”
• 1965: First business-centres in the U.S.
• 1980–90: 1st ‘boom’ of business ce...
II. HISTORY
“A market with a rich history”
• First boom of business centre until
1990-95
• Then, 95-2005 : more failures t...
 Total appr. 185 “business centers” and 68 ‘CW-centers’
identified in Belgium :
 28 ‘BC’s’, Bedrijvencentra
 17 BC + 8 ...
 Appr. 55 % of Belgium’s business
centers are located in Brussels,
Antwerp en Gent
 32 % located in Brussels
 13 % loca...
 A growing number (45 %) of the
coworking and business centers are
located in the center of the cities
 This was only 34...
IV. FINANCIAL DATA OF BUSINESS CENTER MARKET
4.1. Turnover evolution
• Turnover
– Total market turnover nearly 100 Mio €
–...
IV. FINANCIAL DATA OF BUSINESS CENTER MARKET
4.2 Operational profit (EBIT) of business centers
• Although > 25% of the bus...
IV. FINANCIAL DATA OF BUSINESS CENTER MARKET
4.3 Different financial models
• Asset – efficiency of ‘International market’...
IV. FINANCIAL DATA OF BUSINESS CENTER MARKET
4.4. Advantages of scale ?
• There are clearly a lot of advantages of scale i...
Conclusions
• The business and coworking market are ‘integrating’ more and more towards a service-
office market
– And, th...
Annexe
List of business centres and coworking
places inventoried for this study
rie Locatie Naam Locatie Naam Locatie Naam
BC Geel 4Wings BC Oostende Bedrijvencentrum Regio Oostende BC Waver Business Ce...
Locatie Naam Locatie Naam Locatie Naam
BC Herentals Frame 21 CW Gent Loft169 BC Brussel Seed Factory
BC Tournai Futur Orcq...
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Belgian Business and coworking center : Market analysis september 2016

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Final presentation of the market analysis of the Belgian coworking en business center, based on figures 2016 and financial figures of2015

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Belgian Business and coworking center : Market analysis september 2016

  1. 1. The power of professional financial management fin POWER From business and coworking-centers to ‘service offices’ A fast evolving market with growth expectations SERVICED OFFICE MARKET IN BELGIUM Key financial figures Bobca Conference, September 2016
  2. 2. I. Introduction & situation within ‘Office market’ II. History and evolution of # flexible workspaces III. The business centre market : actual situation IV. Key financials of the business centres in Belgium V. Conclusions INTRODUCTION
  3. 3.  Business & coworking-centers in Belgium :  See list in annex  What is a business or coworking-center ?  Uses this as name of his business (business center or coworking-space or both)  Business center : full-time reception available – cfr. VAT-regulation for business centers  Coworking-center : focus on ‘community’, community manager, no full time reception necessary  For profit, registered companies (excl. not-for-profit organizations)  Serviced offices = full time reception services or community-manager  Used figures :  Published financial data (Belgian National Bank) INTRODUCTION “Definitions and limitations”
  4. 4. INTRODUCTION Situating within the total ‘OFFICE MARKET’ 4  Office-market in Belgium  Market of ‘larger cities’ very well documented  Own, rough estimation of market in regional cities  Total ca. 21 Mio m², accommodation for appr. 1 Mio collaborators (employees + civil servants in office environments)  Stable market with appr. 21 Mio office space  Business center market  Definition of ‘business center : ‘  Flexible contracts, Including services  Excluding ‘joint-office-buildings’ with no ‘reception’  Total : ca. 185 business centers, appr. 330,000 m² office space.  Accounts for appr. 1,6 % of total office space in Belgium, growing market-share.  Co working market  New, upcoming market  Total of appr. 71 Coworking spaces in Belgium, totaling appr. 35,000 m² office space.  Growth rate of market > 30-50 %, but still limited examples of viable business models. The business and coworking-market covers appr. 1,6 % of the total office market in Belgium (<> 2-4 % in U.K., the Netherlands) Offices (x 1,000 m²) Brussel 13.000 Antwerpen 1.900 Gent 1.200 Liège 500 5 other main office cities : 200 - 400 (Charleroi, Namur, Hasselt, Leuven, Mechelen) 15 'regional cities' 100-200 (f.ex. Kortrijk, Roeselare, Brugge, St. Niklaas, Aalst, ) Total office spaces in 'cities' : 20.950 # Business centres (in m²) Number : 184 Average surface : 1.792 Total surface occupied : 329.684 in % of office market : 1,57% # Co working centers Number : 71 Average surface : 469 Total surface occupied : 33.270 in % of office market : 0,16% in % of business center market : 10,09%
  5. 5. INTRODUCTION Situating within the total ‘OFFICE MARKET’ 5The office market is shifting towards the ‘serviced offices’ Serviced Office market Flexible contracts (month/year/…) Focus on services and community Office market ‘long term contracts’ No flexibility Limited services (facilities)  Limited ‘new constructions’ < 2 % of market  Decreasing demand due to NWOW Coworking market < monthly ‘memberships’ Flexible, focus on ‘community’ Limited but increasing services  Market growth > 50 %/year Business centre market Flexible ‘yearly’ contracts Flexible, focus on ‘services’ Limited but increasing community  Market growth 5-15 %/year Decreasing market Increasing market
  6. 6. II. HISTORY “A market with a rich history” • 1965: First business-centres in the U.S. • 1980–90: 1st ‘boom’ of business centres (bedrijvencentra) – Apr. 120 initiatives in Belgium – Several subvention schemes to stimulate investment • f.ex. 1989 : Regus, Officenter and more then 50 Bedrijvencentra were created • 1990 – 2005 : Survival of the fittest – Apr. 1/3th of the initial initiatives did not survive – Most other initiatives ‘fight to survive’ • F.ex. Closure of Intercenter, Officenter Mechelen, Chapter 11 for Regus in 2003, … • 2006 – actually : – Market growth the business centre market of 5-15 %/year – Market becomes profitable under the guidance of Regus – the ‘Gorilla’ in this market. • 2005 : The first ‘coworking-site’ in San Francisco (Hat Factory by Brad Neuberg) • 2008 : First coworking sites in Brussels (Silversquare, The Hub) • 2008 - .. : survival of the fittest coworking-locations – The Hub and 50 % of the other initiatives in this market have ceased to exist. – Wework demonstrates the strong growth possibilities of this market 2014-16 : increase in ‘hybrid’ formulae  evolving to one ‘SERVICED OFFICES market’
  7. 7. II. HISTORY “A market with a rich history” • First boom of business centre until 1990-95 • Then, 95-2005 : more failures then start-ups in our market until … • 2005-6 : start of the ‘New Way of Working’ • From then, we see an acceleration of the growth of locations from 5- 10 % (2005-2010) to 10-20% actually • Actually, the market has grown to more then 250 flexible workspace locations in Belgium – double of the number 5 years ago.
  8. 8.  Total appr. 185 “business centers” and 68 ‘CW-centers’ identified in Belgium :  28 ‘BC’s’, Bedrijvencentra  17 BC + 8 CW centers for Regus  6 ‘groups’ with 3-8 centers  13 operators with 2 centers  appr. 140 operators with only 1 location, appr. 50 % of the market  In 2011 : ca. 135 BC, which means an annual growth of appr. 10 %/year  Failure rate limited (< 3 % of market)  C.W. market is clearly growing faster  Growth from 50 tot 68 locations in 2015 (+40 %)  Differentiation between ‘business centers’ becomes unclear (only VAT-regulation is relatively clearcut) In Belgium, we observe appr. 250 business and coworking centers of which more than 50 % are stand-alone centers. III. BUSINESS CENTERS IN BELGIUM 3.1. Number of Business Centers
  9. 9.  Appr. 55 % of Belgium’s business centers are located in Brussels, Antwerp en Gent  32 % located in Brussels  13 % located in Antwerp  8 % located in Gent  Is comparable with the importance of the relative office market.  Only 10 cities have more then 4 BC/CW-initiatives, which seems a minimum to have a profitable market. > 50 % of all business centers in Belgium are located in the three main cities (Brussels, Antwerp and Gent) III. BUSINESS CENTERS IN BELGIUM 3.2 Business centers by location Cities Aantal Brussel 81 Antwerpen 31 Gent 21 Liège 10 Leuven 8 Hasselt 8 Louvain La Neuve 7 Kortrijk 7 Mechelen 5 Charleroi 4 Namen 3 Sint-Niklaas 3 Nivelles 3 Oostende 3 Ieper 3 Brugge 3 Total 257 32% 12% 8%4% 3% 3% 3% 3% 2% 2% 1% 1% 1% 1% 1% 1% 1%1% 1%1%1%0% Number of BC/CW-centers pro city Brussel Antwerpen Gent Liège Leuven Hasselt Louvain La Neuve Kortrijk Mechelen Charleroi Namen Sint-Niklaas Nivelles Oostende Ieper Brugge Turnhout Aalst Genk Locatie Aantal Aktief in 2016
  10. 10.  A growing number (45 %) of the coworking and business centers are located in the center of the cities  This was only 34 % in 2010 !  Actually, still more centers are located on the ringways or in industrial area’s  Recently, locations within stations are opened by Regus The percentage of business and coworking centers located in city- centers is growing in Belgium. III. BUSINESS CENTERS IN BELGIUM 3.3. Ownership – types of the Belgian business center market
  11. 11. IV. FINANCIAL DATA OF BUSINESS CENTER MARKET 4.1. Turnover evolution • Turnover – Total market turnover nearly 100 Mio € – 1/3th is done by international players • Own only 17 % of the business centers – The private owners serve nearly 50 % of the market • Growth rhythm – Exponential market-creation 1980-1995 : more then 100 BC created – From 1995 – 2005 : no substantial growth of the market (< 2 %/yr) – 2006-2010 : growth with 5-10 % per year, not abnormal for this market compared with international studies – 2011 – 2014 : growth 2-5 %, relatively low due to price-pressure. – 2015 : turnover growth of 6,5 % - increasing, but still lower then in surrounding markets. The Belgian business center market is lagging behind on the international growth rates of the market of appr. 10 %/year
  12. 12. IV. FINANCIAL DATA OF BUSINESS CENTER MARKET 4.2 Operational profit (EBIT) of business centers • Although > 25% of the business centers make losses, the ‘market’ has a positive profitability, varying between 0 and 5 %. • The private and international centers have in 2015 an acceptable profit of appr. 4 % operating profit on turnover. – Acceptable since 5-10 % seems to be the target – But, clearly decreasing vs. the 5-10 % levels in the ‘golden’ years 2006-2010 • A lot of semi-public initiatives do make substantial losses, although appr. 50 % are profitable The price pressure since 2010 has decreased the profit margins of our market, which is still pushing the turnover downwards.
  13. 13. IV. FINANCIAL DATA OF BUSINESS CENTER MARKET 4.3 Different financial models • Asset – efficiency of ‘International market’ is very high – no investment in ‘own’ buildings – Private and public sector operators mostly have invested in the building • Financial leverage of public sector very limited (cash > loan volume) The ‘international’ operators focus optimizing their financial leverage, where the public sector needs 4 x more own funds for the same 1 € turnover. Turn- over Fixed Assets Assets/ Turnover Own Funds Own Funds/ Assets Own funds/ Turnover International 26.295 5.480 0,2 -8.223 -1,5 -0,3 Private 45.944 132.465 2,9 63.353 0,5 1,4 Semi-public 25.241 112.922 4,5 107.489 1,0 4,3
  14. 14. IV. FINANCIAL DATA OF BUSINESS CENTER MARKET 4.4. Advantages of scale ? • There are clearly a lot of advantages of scale in the business center market – Commercially (website, referrals, …) – Purchasing power, also on management-level – Strategically and ‘best practices’ • But, the medium turnover of a business center is declining …. – And, we have not included the coworking-centers in this comparison … • We have put the ‘profitability’ of a center compared with the ‘size’ of each center. – Profitability = profit margin on turnover – Size = turnover by center • The ‘regression-line’ clearly demonstrates – The substantial losses that a business center makes in his 1-2 starting years (between 100 and 500 k€) – A ‘break-even’ level of a ‘median’ center around 500 k€ turnover – Above 600-700 k€ turnover, most of the business centers are profitable.
  15. 15. Conclusions • The business and coworking market are ‘integrating’ more and more towards a service- office market – And, the market-share of this market has increased from 1,4 to 1,6 % of the total office market in Belgium. – Still lagging behind the levels in the U.K. and the Netherlands (2-4 %) • The turnover of our market has increased with 6 % in 2015, in the ‘normal’ 5-10 % growth rate and reaches nearly 100 Mio turnover. • The profitability of the market is regaining normal levels – Only the public sector remains a segment of the market where substantial losses occur.
  16. 16. Annexe List of business centres and coworking places inventoried for this study
  17. 17. rie Locatie Naam Locatie Naam Locatie Naam BC Geel 4Wings BC Oostende Bedrijvencentrum Regio Oostende BC Waver Business Center Wavre Nord BC Aalst Aalst City Center BC Waregem Bedrijvencentrum Regio Waregem BC Kortrijk Business Centrum Kortrijk Pottelberg BC Aalter Aalters Bedrijvencentrum BC Roeselare Bedrijvencentrum Roeselare BC Willebroek Business centrum Rivium BC Lier Accentis business center BC St Truiden Bedrijvencentrum Sint Truiden CW Fosses La Ville Business One BC Egezée Accortise Pactech Business Center BC Tienen Bedrijvencentrum Tienen BC Liège CAP Business Center CW Antwerpen Acospace BC Tongeren Bedrijvencentrum Tongeren CW Nivelles Capinnove BC Brussel Acte BC Veurne Bedrijvencentrum Veurne BC Louvain La NeuveCEI Louvain BC Gent Adequat BC Brussel Bedrijvencentrum Vilvoorde BC Brussel Centre d'Entreprises de Saint-Gilles CW Gent Aerey Coworking BC Oudenaarde Bedrijvencentrum Vlaamse Ardennen BC Liège Centres d'Affaires Afinis BC Brussel Agence 86 'creative business center' BC Sint-Niklaas Bedrijvencentrum Waasland BC Louvain La NeuveCercle Du Lac BC Antwerpen ALMAntwerpen BC Brussel Bedrijvencentrum Zaventem BC Brussel Chambre d'affaire CFCI BC Brussel Alnair Business Center BC Brussel Bedrijvencentrum Zennevalei CW Kontich Clubhouse Coworking BC Antwerpen Antwerp Berchem Central Station BC Brussel Belgium Business center BC Genk C-Mine Crib BC Antwerpen Antwerp Business House BC Antwerpen Benelux Business Center CW Antwerpen Co Buro CW Antwerpen Antwerp Central Station CW Brussel Beta Group Coworking CW Mons Co nnexion -coworking BC Antwerpen Antwerp City Center BC Leuven Bio Incubator Leuven CW Brussel Co.Station Brussels BC Sint-Niklaas Astrid Business Center Sint-Niklaas BC Brussel Bisschofsheim business center CW Hasselt Corda Incubator BC Brussel Ateac Business Center BC Brussel Bizzcenter CW Brussel Coworking Business Center Brussels BC Brussel Ateliersdes Tanneurs BC Kortrijk Bizz-Init CW Hasselt Coworking Hasselt BC Louvain La Neuve Axisparc business center BC Brussel BLSI CW Namen Coworking Namur CW Brussel Bar Buro BC Antwerpen BNO 'The factory' CW Tielt Creatielt CW Brussel Bar D'Office Brussel (Voka) BC Brussel BPS Ad Hoc CW Liège Cristal Hub Coworking CW Leuven Bar D'Office Leuven CW Brugge Brugge Station BC Leuven de Hoorn CW Oostende Bar D'Office Oostende CW Brussel Brussel Central Station CW Brugge De Huyskamer BC Nivelles BCS Group CW Brussel Brussel Luxemburg Station BC Antwerpen De Wolkammerij BC Aalst Bedrijvencentrum Aalst BC Brussel Brussels Airport Corporate Village BC Brussel Diamant Conference & Business Center Brussel BC Beringen Bedrijvencentrum Beringen BC Brussel Brussels City Center BC Liège Diamant Conference & Business Center Luik BC Gent Bedrijvencentrum De Punt BC Brussel Brussels Groot Bijgaarden BC Brussel Diegem Grensstraat BC Antwerpen Bedrijvencentrum De Winkelhaak BC Brussel Brussels IT Tower CW Antwerpen Dots Coworking BC Dendermonde Bedrijvencentrum Dendermonde BC Brussel Brussels Village BC Gent Easy Office Center BC Genk Bedrijvencentrum Genk BC Brussel Brussles EU Schuman BC Brussel EEBIC Business Center BC Geraardsbergen Bedrijvencentrum Geraardsbergen CW Brussel Brussles South Station BC Louvain La NeuveEinstein Business Center BC Hasselt Bedrijvencentrum Hasselt CW Sint-Truiden Bur O Bar CW Brussel Enclume&Co BC Ieper Bedrijvencentrum Ieper BC La Louvi!re Buro Business du Centre CW Tournai ESCO Expace Coworking BC Zelzate Bedrijvencentrum Kanaalzone BC Namen Burogest Bouge BC Brussel Espace Moselle BC Leuven Bedrijvencentrum Leuven BC Namen Burogest Office Park BC Brussel EU Business Centre BC Maasmechelen Bedrijvencentrum Maasmechelen CW Antwerpen Burooz BC Liège Euregio Business Center Liège BC Malle bedrijvencentrum Malle BC Brussel Burotel CW Brussel Factory Forty BC Maldegem Bedrijvencentrum Meetjesland BC Brussel Burotel 367 BC Dienze Filad Ondernemingscentrum BC Overpelt Bedrijvencentrum Overpelt BC Brussel Burotel Congres CW Brussel Firma BC Brugge Bedrijvencentrum Regio Brugge BC Antwerpen Business Center Amerikalei BC Brussel Flagey Digital BC Kortrijk Bedrijvencentrum Regio Kortrijk BC Charleroi Business Center Charleroi CW Gent Floating Desk Coworking BC Mechelen Bedrijvencentrum Regio Mechelen BC Nivelles Business center services BC Antwerpen Fountain business park
  18. 18. Locatie Naam Locatie Naam Locatie Naam BC Herentals Frame 21 CW Gent Loft169 BC Brussel Seed Factory BC Tournai Futur Orcq BC Louvain La Neuve Louvain-La-Neuve BC Brussel Servcorp Bastion Tower BC Mouscron Futur X BC Gent Maaltecenter BC Brussel Servcorp Schuman BC Oostende Greenbridge incubatiecentrum en wetenschapsparkBC Brussel MC Square BC Brussel Silver Square BC Houthalen Greenville Cleantech Campus BC Mechelen MC Square Mechelen BC Brussel Silver Square BC Gent Growth Fase BC Antwerpen Multiburo Antwerpen Centraal Station BC Brussel Silver Square BC Antwerpen HAVN -Buzzispace BC Brussel Multiburo Brussels Airport BC Brussel Sint Annacenter BC Sint-Niklaas Heptagon business center BC Brussel Multiburo Louise CW Antwerpen Social Media Club Kube8 CW Antwerpen Het Bolwerk / Bar d'Office (Fort 5) BC Brussel Multiburo Quartier Européen CW Turnhout SPK -Bar D'office CW Aalst Hopmarkt 50 BC Diest Office 21 BC Turnhout Square Point Business Center BC Hasselt Huis Vanstraelen BC Brussel Office services Brussels CW Sint Niklaas St Niklaas Station BC Gent Huize Minne BC Leuven Officener Leuven CW Brussel Studio 28 BC Leuven I & I Leuven BC Hasselt Officenter CW Antwerpen Studio Start BC Gent IBBT-Incubator BC Antwerpen Officenter Antwerpen/A12 CW Antwerpen Swenst CW Gent Icubes BC Turnhout Officenter Turnhout CW Charleroi Switch Coworking Charleroi BC Gent I-Cubes CW Mechelen Ondernemershuis/Bar d'Office BC Mechelen T-Offices CW Melle Idee Kids CW Ieper Ondernemingscentrum Ieper/ Bar D'Office BC Antwerpen Talentarena BC Gent Idola Business Center CW Gent Oneoffice CW Antwerpen Telenet Idealabs -The Squad BC Ieper Idola Business Center BC Bierges Optimalis Business Center CW La Louvi!re the cowork Factory CW Gent Ihub BC Brussel Oriona Group Cinquantenaire BC Gent The Crescent Ghent BC Estaimpuis Impact Centre Européen d'affaires et de services BC Brussel Oriona Group Louiza BC Brussel The Crescent Riverside BC Leuven In volle Vaart BC Brussel Oriona Group Schumann CW Brussel The Flex BC Gent Incubatie en Innovatiecentrum Ugent BC Brussel Paepsem Business Center BC Brussel The Hub Brussel CW Antwerpen Indian Caps BC Gent Parkoffice CW Brussel the Library BC Brussel Innovatie en incubatiecentrum Brussel BC Kortrijk Parkoffice CW Brussel The Mug BC Wommelgem Interoffices Antwerp East BC Brussel Plug &Work CW Aarschot The Office (coworking Aarschot) BC Zaventem Interoffices Brussels Airport BC Charleroi Quadrature Business center CW Kortrijk The Studio's CW Antwerpen K85 BC Brussel Quartier Latin CW Ronse TIO3 Textiles Open Innovation Centre BC Hasselt Kaai 16 BC Eupen Quartum Business Center CW Brussel Transforma CW Antwerpen KBC Startig Antwerpen CW Mechelen RE: Flex Mechelen BC Brussel Tribes Brussel CW Antwerpen KBC Startig Gent CW Antwerpen RE:flex Berchem BC Kortrijk Twelve CW Hasselt KBC Startig Hasselt BC Brussel Regus Airport Diegem BC Antwerpen UBIS CW Brussel KBC Startit Brussel BC Brussel Regus Airport Meeting Center BC Antwerpen Universitair bedrijvencentrum CW Kortrijk KBC Startit Kortrijk BC Braine lalleud Regus Braine Lalleud BC Brussel VIP Offices Headquarter BC Geel Kempens Bedrijvencentrum BC Brussel Regus Brussels South Station BC Tielt Vlaemynck Business Center CW Liège La Forge BC Brussel Regus Brussels West Basilix BC Hasselt Wetenschapspark Limburg CW Louvain La Neuve Lauvain Coworking Space BC Brussel Regus Central Stattion BC Louvain La NeuveWetlands Business Center CW Tubize Le Centre d'Entreprises Chapagne Landas BC Brussel Regus Commision CW Gent Wolfstraat 9 CW Leuven Leuven Station BC Brussel Regus EU Parliament BC Brussel Workspaces CW Antwerpen Level 9 BC Gent Regus Gent Zuiderpoort BC Antwerpen WTC business center BC Liège Liège business center BC Brussel Regus Midi CW Charleroi Wup Coworking CW Liège Liège Guillemains BC Brussel Regus Waterloo Office Park CW Hasselt Zelfies BC Liège Liège Spatiopôle CW Liège Rogier Espace Coworking BC Zellik Zellik.biz CW Gent Like Birds BC Brussel Science14 Atrium

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