Flexible working operators to snap up 550,000 sqft of office space by end-2019 | Singapore Business Review

Flexible working operators to snap up 550,000 sqft of office space by end-2019

There are 141 such players located across Singapore.

Co-working spaces are expected to take up 550,000 sqft of Singapore’s office market in 2019, according to property consultant Colliers International. Although the figures will fall short of the  570,000 sqft occupied by flexible coworking spaces in 2018, Colliers still lauds Singapore as the most mature market for co-working spaces in Asia.

In 2013-2018, the number of flexible office set-ups more than doubled and its market size expanded by three times in the five-year period, data from CBRE show. As of June 2019, approximately two in five office buildings in Singapore currently have some sort of flexible office component.

Also read: Check out the largest co-working spaces in Singapore

Across the island, there are 141 flexible workspace centres where average desk cost per month amount to $776.82 (US$573) whilst average Grade A rents are $115.23 (US$85) psf pm, according to data from the report. This is cheaper compared to Hong Kong’s average desk cost per month and average Grade A rents of $1,005 (US$741) and $164 (US$121), respectively.

“The flexible workspace market in Singapore has been largely concentrated in the core CBD within Grade A buildings. However, as the market has grown operators have sought opportunities in fringe locations such as Tanjong Pagar and Orchard Road,” Colliers International director Bastiaan Van Beijsterveldt said in a report. 

Also read: Singapore's co-working boom has no end in sight

The report noted that WeWork is the most aggressive amongst operators in terms of expansion. Currently, the New York-based operator occupies 95,000 sqft at MYP Centre in Raffles Place.

“However, several local operators made significant strides – JustCo’s investment from Frasers and GIC has accelerated growth, and The Work Project and The Great Room are delivering premium, hospitality-driven product across the market,” Beijsterveldt added.

Furthermore, landlords have increased exposure to flexible workspace over 2018. For its part, CapitaLand invested $27m for a 50% stake in The Work Project. Thes kinds of partnerships with landlords are expected to strengthen in 2019, the director said. “We should see M&A take place, especially with international operators looking at leveraging local market knowledge as a way of entering the market.”

Get Singapore Business Review in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

All of its key businesses were profitable in the first six months of the year.
Singtel, Keppel Corp, and OCBC Bank led the Straits Times Index on 29 July.
There seems to be a trend amongst workers looking to switch employers.
Total property income decreased by 4% but was offset by the decline in expenses. 
This is under the Special Situation Fund for Startups investment scheme. 
Called Project Nexus, the blueprint outlines how countries can integrate their retail payment systems onto a single cross-border network.
It plans to expand in the coming months, on the back of China’s economic recovery.
Funds will be used to modernise its portfolio.
Local financial firms are expected to remain resilient even should the economy slip into a recession again.
The Mapletree group of companies led the index on 28 July.