Coworking Space Volume In Asia Pacific Up 6%
ASIA PACIFIC – An industry report by real estate consultancy CBRE revealed that the overall amount of coworking space in the region has edged up by 6 percent to 87 million sq ft as of March 2023 compared to the end of Q3 2022, according to a recent report from The Edge.
At the end of the first quarter of the year, flexible office space accounted for around 4 percent of the total office supply in the Asia Pacific (APAC) region.
In addition, the percentage of coworking space housed within Grade A office properties inched up to 3.5 percent in Q1 2023 from 3.1 percent during the third quarter of last year. CBRE said the uptick indicates robust demand from coworking space operators looking to upgrade their outlets to more Grade A office buildings.
Across Asia Pacific, the top three sectors that occupy flexible office spaces are financial firms (12 percent), business services (16 percent), and tech firms at 35 percent. And CBRE thinks that technology companies will continue to be the biggest occupants of coworking space in the region for 2023.
In Singapore, the proportion of coworking space penetration in the overall office sector is around 5.4 percent, which works out to an overall volume of about 4 million sq ft. CBRE disclosed that occupants are giving more importance to property portfolio flexibility amidst ongoing economic uncertainty. This has prompted a greater focus on cost reduction, driving demand for coworking spaces.
According to a poll of office tenants in the region by CBRE, over 50 percent of the respondents think that the percentage of flexible office space in their portfolios is under-allocated. They also plan to increase their use of coworking space over the coming months.
Meanwhile, concerns over capital expenditure are driving a shift towards dedicated workspaces. There is also a more robust demand for office access passes and event spaces. Furthermore, CBRE forecasted that demand for pay-per-use workstations would increase this year.