Flexible Office Space Increases 150% In Asia In Last 3 Years
Asia is one of the most booming regions in the world and latest reports reveal that flexible office spaces in Asia have increased by 150% in the last 3 years. Moreover, the operators of these spaces have also doubled. According to JLL, from 2014-2017, these spaces have experienced a 150% increase.
The concept of co-working office spaces has increased greatly in Asia as more and more people and companies are opting for them. With these spaces, there is no need for one to find a rental office space or invest in one as they can simply get a space and rent it for their office use.
It was also revealed that in these 3 years, the net lettable area of these spaces increased at a rate of 35.7% (annually) in the Asia Pacific markets. Asia experienced the highest growth as in US, there was just a 25.7% rise in these spaces, whereas in Europe, the spaces increased by 21.6%. As of now, the total space of these offices is 1.3 million square meters and they are spread across many regional markets.
Amongst the Asian economies, the highest office penetration rate is in Beijing and Shanghai. Hong Kong has the lowest of these rates, residing just over 1%.
The co-working spaces are spread throughout Asia. Shanghai alone has over 1000 of these shared spaces. However, JLL reports that some of these spaces are also quite small. The report in which the details were revealed was called “Spotting The Opportunities: Flexible Space in Asia Pacific”.
JLL’s data on co-working spaces covers a range of services such as co-working spaces and serviced offices along with open market leases and others. JLL revealed that the total number of co-working spaces in Asia more than doubled, going form 45 to 103 from 2014-2017. Many major companies also developed their own coworking products in this meantime including The Executive Centre and others.
Amongst all of these years, 2016-2017 was a period of inflexion point, where a lot of main players came in the market. People from the international scene also came in, where we saw the emergence of WeWork, whereas local operators also expanded. The names in the list of local operators included Ucommune and Naked Hub.
There have been leasing obstacles in Asia all this time but these co working operators have made sure to shrug all of them aside. Despite these tough conditions, coworking spaces nonetheless increased in the country. There are too many advantages of coworking spaces. For starters, they allow you to run your own office from a simple desk, paying regular fees that are a lot less than the cost of investing and making your own office. Therefore, companies, especially smaller companies, are opting for these spaces as they help them start without having to have full on capital.
Amongst all those countries, which experienced a rise in coworking spaces in Asia, were Beijing, Bengaluru and Shanghai. Other countries that had an increase in these spaces were Hong Kong.