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Among the workspace operators that are seeing growth in Singapore is Arcc Spaces, which opened its newest facility in downtown Singapore in August. Image: Google Maps
Despite the commercial property slump due to the COVID-19 pandemic, workspace operators continue to bet on Singapore for their latest stage of growth.
Among them is Arcc Spaces, which opened its newest facility in downtown Singapore in August.
Decked with cushy seats and tables with vases of flowers, the 19,000 sq ft flexible workspace is intended to convey a sense of “serious business”, Matthew Chisholm, chief operating officer at Arcc told Nikkei Asia.
This is contrary to the more informal look that has been associated with co-working offices.
“[You are] very unlikely to see beer kegs in Arcc Spaces’ places, slogans on walls and hipsters in flip-flops,” said Chisholm. “We consider ourselves an innovator in premium flexible workplace as defined by our customers, who are typically established businesses.”
He revealed that Arcc’s clientele comprises “reputable companies” from sectors such as media and telecommunications as well as banking and finance, reported Nikkei Asia.
Aside from Arcc, US workspace operator Industrious and Singapore-based investment firm SIN Capital also announced plans to open a 30,000 sq ft development near Orchard Road in the second quarter of 2021.
“Businesses are increasingly looking for flexible workspace options that are accessible on whatever terms work best for them,” said Industrious Chief Executive and Co-founder Jaime Hodari as quoted by Nikkei Asia.
Singapore has become a sweet spot for workspace operators since the city-state’s office market registered one of the lowest vacancies during the first quarter of 2020 among Asia’s financial hubs.
Based on Colliers International data, vacancy rate in Singapore stood at 3.1%, while Hong Kong had a vacancy rate of 7.3%. Shanghai and Beijing, on the other hand, posted a vacancy rate of 19.2% and 16.7%, respectively.
And while vacancy rate in Tokyo was better than Singapore’s at 1%, the Japanese capital was the most expensive Asia Pacific market for fitting out offices.
A Cushman & Wakefield report showed that the average cost of fitting out an office in Tokyo stands at US$201 (S$266.8) per sq ft (psf), up from US$130 (S$172.55) psf in Hong Kong and US$112 (S$148.66) psf in Singapore.
“As a first step, Singapore is a soft landing into Asia generally,” Jonathan Wright, Director for Flexible Workspace Consulting in Asia at Colliers, told Nikkei. “It creates a great platform from which to create a regional business.”
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