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Co-working spaces such as Trehaus (pictured), Singapore’s first to offer child-minding facilities, provide variety to the country’s office landscape (Photo: Trehaus).
More co-working spaces are expected to be built in Asia Pacific, as the demand for such flexible working environments are forecasted to rise at an average of 10 percent to 15 percent per annum across all regions in the world, according to a report from CoreNet Global and Cushman & Wakefield.
The report revealed that the supply of co-working space in Asia Pacific has reached 10 million sq ft. But this is lower than Europe’s 20 million sq ft and the 40 million sq ft in the United States.
Despite the smaller inventory, Asia Pacific is home to the largest proportion of corporate real estate (CRE) managers (70 percent) who intend to tap on this type of office space to achieve opportunistic growth in the next 12 months. 63 percent of them also said pursuing this goal is the most vital motivation for using co-working space.
In addition, more than 50 percent of those polled anticipate to reduce their expenses when utilising such flexible working environments in prime locations, given that co-working spaces are typically more affordable than traditional office space in these areas by 10 percent to 30 percent.
“Traditionally businesses were constrained by the time and cost of acquiring and fitting out new premises. The shorter leases and competitive costs of these spaces provide options for businesses wishing to scale up either at speed, on a project basis or for a temporary period,” said Chris Browne, Cushman & Wakefield’s Head of Global Occupier Services for Asia Pacific.
Given the benefits, about five million sq ft of co-working space were rented out in Asia Pacific last year, as the region remains a top destination for expansions outside North America for international companies that aim to build or maintain a foothold in gateway cities and financial centres in the region.
The survey conducted in H2 2016 involved a total of 176 respondents, who are mostly end users and service providers. They come from a wide range of industries, although Technology, Professional Services, as well as Banking, Financial services and Insurance (BFSI) accounted for 57 percent of the sectors. Nevertheless, CRE executives at all levels were well represented in the research.
This article was edited by Denise Djong.
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