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According to Spacemob’s Turochas Fuad, millennials are attracted to colourful and creative spaces, from which they can gain insights and inspiration. (Photo: Spacemob)
More coworking spaces are expected to rise in Singapore over the near term, and this type of office is expected to become a popular asset class, reported The Business Times.
“Coworking spaces will establish itself as a rising real estate asset class, just like hotels and serviced apartments did, if it hasn’t already,” said Jaelle Ang, Co-founder of hotel-inspired coworking space The Great Room Offices.
At present, there are over 50 flexible working environments here. But the market is still young and growing, said experts, noting that existing operators of coworking spaces are rolling out new premises, while new types of players are emerging.
For instance, Singapore-based JustCo is set to open two branches at the upcoming Marina One and the recently-completed UIC Building this year. China’s Distrii will also embark in its first international expansion by establishing a presence in Republic Plaza here by 2018.
According to a report by Cushman & Wakefield and CoreNet Global last month, demand for coworking space in Asia Pacific is forecasted to grow at an average rate 10 percent to 15 percent per annum.
The strong demand is driven by firms seeking workspaces that allow them to grow or downsize when needed without being restricted by long-term rent amidst global economic uncertainty.
“Traditionally, businesses were constrained by the time and cost of acquiring and fitting out new premises,” said Chris Browne, Cushman & Wakefield’s Head of global occupier services for Asia Pacific.
“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.”
Moreover, these flexible work environments are usually 10 percent to 30 percent more affordable than traditional office spaces. They are also near amenities and appealing to millennial professionals, revealed the report.
This is an advantage considering that this group is expected to account for 75 percent of the global workforce by 2025, revealed another research.
Spacemob, one of the new players in Singapore’s coworking scene, noted that millennials are attracted to colourful and creative spaces, from which they can gain insights and inspiration.
“Coworking spaces deliver well on these promises, and will be a mainstay in the years ahead,” said Spacemob Chief Executive Office Turochas Fuad.
This article was edited by Denise Djong.
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