Since our 2021 Customer Sector Report, our 2024 Customer Sector Report illustrates that our business customers have tackled unprecedented challenges but for the most part have proved to be impressively resilient. Having emerged from the Covid-19 pandemic, they have adapted to new WFH/hybrid working patterns. They have responded to economic turbulence propelled by rising fuel prices, high interest rates and rocketing inflation by pruning costs where possible. Whilst geo-political pressures triggered by war in Europe, the Middle East and upcoming elections in the UK and USA spell continued uncertainty, many of our customers have expressed optimism about the future.

As a result of business endurance, Capital Space Ltd has enjoyed consistent 90%+ occupancy across our nine business centres over the last three years. Demand for our  offices, studios and workshops remain high, proving that the flexibility offered by our simple, monthly licence is the primary magnet in attracting SMEs and virtual office customers.

For the first time, our customer sector report reflects insights from our virtual businesses, as we wish to showcase the growth of this sector within Capital Space Ltd and to reflect the entire breadth and diversity of the businesses who make their home with us – whether occupying workspace or enjoying a registered business address at our sites.

Highlights

This year’s report illustrates there have been perceptible shifts in our onsite portfolio. They include:

* the rising prominence of businesses from the retail, distribution and manufacturing sectors

* a drop in the overall number of businesses from the construction/building trade and related industries

* an uptick in onsite customers from the health, wellbeing and beauty sectors.

Onsite businesses

In 2024, our top 4 customer sectors remain the same from 2021 dominated by the retail, distribution or manufacturing trades, which represent almost one in four of our onsite businesses across the group. Dropping from the table this year are IT, services, which have been leapfrogged by recruitment companies and leisure businesses, which includes fitness instructors and gyms.

The retail, distribution, and manufacturing sector has dominated, representing 25% of all our customers, up from 18% in 2021. Construction is our second largest sector, representing 11% of our customers. This is a decline of 3% from 2021.

The remaining three sectors topping our list are:

* health and beauty representing 11% of our customers, up from 10% in 2021

* financial services have remained at 6%

* recruitment is up from 3% to 5%

and leisure/other is at 4%, up from 3%.

High customer loyalty

Our report highlights that Capital Space Ltd continues to have a consistent 90% plus occupancy rate across all nine of our business centres. Breaking this high retention rate down further, we see that of those customers:

  • 14% have stayed with us between 12 and 20+ years
  • 15% have stayed for between 8 and 12 years
  • 35% have remained with us between 3 and 8 years
  • 34% have been with us for 0 to 3 years.

Virtual office solutions

In 2024, we examined our virtual office business sectors for the first time. Retail, distribution and manufacturing make up 19% of our virtual customers, followed by construction companies (14%) and financial and IT services, each at 8%.

To read the full report, click here: Customer Sector Report 2024