Flexible workspace to make up 20% of local office market by 2020

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/ EdgeProp
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March 5, 2018 8:00 AM SGT
Singapore’s flexible workspace market saw a flurry of activity by co-working operators last year. “It is the most exciting in the region,” says Duncan White, executive director and head of office services at Colliers International.
Flexible workspace, which comprises serviced offices and co-working space, is now a fundamental part of the commercial real estate market and is growing in size and importance to both landlords and occupiers, says Colliers in its Asia Pacific Flexible Workspace Outlook Report 2018. The average leasing term for flexible workspace is at least 24 months now, up from 12 months in 2013. According to Colliers, this demonstrates that flexible workspace is now a competitor to traditional office space.
Source: Colliers International
Colliers says notable deals in 2017 included The Great Room’s expansion to an entire floor at One George Street and also securing two floors at Centennial Tower, bringing its total space in Singapore to 61,000 sq ft. The biggest deal was Distrii’s maiden venture into Singapore, which saw the China operator taking up 62,000 sq ft at Republic Plaza. The building is owned by property group City Developments, which acquired a 24% stake in Distrii in January last year for RMB72 million ($15.06 million). JustCo’s lease of 60,000 sq ft at Marina Square was the next largest deal.
The Great Room secured two floors of space at Centennial Tower, bringing its total offering in Singapore to 61,000 sq ft
Across Asia-Pacific, take-up by flexible workspace operators accounted for 40% of the overall office market in 2017, says Jonathan Wright, head of flexible workspace services at Colliers. The growth is driven by MNCs, as seen from the percentage of deals for at least 15 workstations rising from 32% in 2016 to 48% in 2017, he adds.
In Singapore, the proportion of office space occupied...