Data showed that the number of flexible office set-ups increased by more than two times from 2013 to 2018, with its market size tripling over the same period.

Colliers International expects co-working spaces to take up 550,000 sq ft of Singapore’s office market this year, reported Singapore Business Review.

Although the projected area is smaller than the 570,000 sq ft occupied by co-working spaces last year, Colliers still lauds the city-state as Asia’ most mature co-working spaces market.

CBRE data showed that the number of flexible office set-ups increased by more than two times from 2013 to 2018, with its market size tripling over the same period.

The data also revealed that there are 141 flexible workspace centres across the island, with average desk costing $776.82 per month, while average Grade A rents stand at $115.23 per sq ft per month.

“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,” said Bastiaan Van Beijsterveldt, director at Colliers International.

WeWork emerged as the most aggressive operator in terms of expansion. The New York-based operator currently occupies 95,000 sq ft 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,” noted Beijsterveldt.

Moreover, landlords have raised their exposure to flexible workspace over 2018. CapitaLand, for instance, invested $27 million for a 50 percent stake in The Work Project.

Beijsterveldt expects such partnerships with landlords to strengthen this year. “We should see M&A take place, especially with international operators looking at leveraging local market knowledge as a way of entering the market.”

Source: 4 Jul 2019, CommercialGuru