Interim dividend up 6% to 0.85p per share (H1 2009: 0.8p)
Commenting on today's announcement Mark Dixon, Chief Executive Officer of Regus plc, said:
"Despite the challenging trading environment I am pleased that we continue to generate cash, deliver cost savings and open new centres on attractive deals. While the market remains difficult to predict, we remain committed to our strategy of restoring our margins by both driving up our revenues and progressively reducing cost while continuing to maximise growth opportunities as changes in how and where we work evolve."
The good news for Regus is that they have cash, £224.2m, to continue their expansion plans which are to "open a centre per day over the remainder of the year." According tot he report Regus is focused on reducing risk through variable rent arrangements that combine operational flexibility for both landlords and for Regus - minimizing risks inherent with longer, more conventional leases.
The really bad news is that their stock prices have plummeted:
The bottom line is that Regus is suffering along with the rest of the worldwide commercial real estate market.
The second biggest mistake made by tenants looking for office
space is not allowing enough time for the process. Far too often tenants will not get started
early enough and have to settle for less than they could have had otherwise.
This applies to tenants who are looking for conventional space and not
executive suite, virtual office space, or co-working space. Typically a tenant
can be in these spaces as soon as the next day or at least within the month.
Tenants looking for conventional office space under
10,000 should get started at least 6 months prior to their move in date. This will
allow enough time to find some good alternatives, negotiate the best deal and
have any tenant improvements completed for an on time move-in. This is true even in a soft market. In fact, even more so since there will be many more possibilities to investigate.
For office tenants over 10,000 square feet, at least 9
months should be allowed. The larger the
tenant, the more complicated the process and more time is needed.
For more information on the office leasing process and
timing, visit our Office Leasing Process Schedule.
Two relatively new office space trends that have impacted the general office space market are co-working office space and virtual office space. As we approach the three year mark of the recession and slow recovery, many professionals have had to look for means to reduce their overheads. With conventional office space costing an average of $4,000 per year per person along with the additional cost of staff, equipment, furniture, telecommunications and Internet on top of that, many small companies have found other means to the way they work that does not include conventional office space.
Two of those alterative workplace methods are co-working space and virtual offices. Co-working space is space in which business people can use tables, conference rooms and shared facilities such as WiFi and videoconferencing on as needed and a pay-per-use basis, significantly reducing overhead. In manu cases it is simply an open room with tables or can be similar to a lounge.
A virtual office is essentially an official address, in a typically prestigious building, in which a small business can have a full time identity and use the facilities on an as needed basis.
Both of these alternatives have impacted the office space market by reducing the need for small business to have a full time office space. Executive suites have been impacted hardest since many of these busisness would have chosen full time offices with them. Even after the effects of the recession are gone, many small businesses will continue to use these alternatives, In fact, it is our believe that these modes of office space occupancy will continue to expand and become even more popular, not just with small businesses, but many large businesses as well. They fit the lifestyle of many younger workers better than conventional office space does.
According to the article below from the OC Register, 20% of professional employees are considering quitting their jobs. Undoubtably most won't considering the economic climate and the difficulty in finding jobs. But, if you are one of the ones who act on it, there are many options available to lease office space to start your own business. The options range from a home office, to virtual office space or executive suite office and of course conventional office depending on your needs, budget and image requirements.
"Two out of five professionals think about quitting their jobs after taking their summer vacations, according to Regus, a provider of flexible workplace ideas. Can you relate?
Of course millions of workers heard about JetBlue flight attendant Steven Slater's spectacular "I quit" recently, grabbing a beer and sliding down the plane's emergency chute. But he hadn't been on vacation. In fact, he probably needed one.
But apparently a vacation doesn't help for many workers."As workers pack up their swimsuits this summer, they are more likely to dwell on the pros and cons of the job that is waiting for them at home," said Regus Regional Vice President Sande Golgart.The top reasons survey respondents gave for wanting to quit: * Lack of communication with management 40% * Lack of career advancement 37% * Feeling overworked 34% * Company lacks vision 31% * Colleagues are incompetent 28% * Lack of administrative support 26% * Rude colleagues 21% * Boss takes credit for respondent's work 20%"
Stress caused by overwork has escalated during the past recession with people working harder and longer to make sure they can pay their bills," Golgart said"
Feel free to add this video to your website. Code:<object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/FA6C5KWJXkI&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/FA6C5KWJXkI&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object>
The second biggest mistake made by tenants looking for office
space is not allowing enough time for the process. Far too often tenants will not get started
early enough and have to settle for less than they could have had otherwise.
This applies to tenants who are looking for conventional space and not
