Coworking Spaces Increase In Singapore: What Does This Mean?
Singapore is the hub of coworking spaces now and new stats reveal that the total area occupied by these spaces in Singapore has increased greatly in the last 3-4 years. According to a report by JLL, the rise in coworking space shows clearly that people want to cut down their expenditures on big spaces and join hands to come up with better solutions as far as their workspaces are concerned.
Head of JLL, while commenting on the rise of these spaces commented, “In Singapore, there has been a rise in the flexible coworking space by major operators by in large. They have increased by 70% to 0.9M sq. ft. by the end of 2017, where they started off at 0.5M sq. ft. towards the end of 2014”. This indicates that with time, the demand and space for coworking space has increased. Further commenting on the situation, he said, “These people have now started to capitalize on these soft rentals in order to grab their own market share”.
The operators of these coworking spaces have also increased by in large. Stats reveal that their total footprint reached 2.1M sq. ft. during the last year, which counted for just 2.5% of the total supply.
However, while these spaces have increased in numbers and coworking space operators are expanding, their footprint is going to stay below 5% in the long term, said Tay Huey Ying. Tay happens to be the research head at JLL.
One of the biggest reasons why these coworking spaces are increasing is the fact that they operate on a plug and play model and they do not require any sort of complicated contracts or negotiations. People can simply go and get themselves a space without having to pay too high for the operating costs, or invest in them in the first place.
Moreover, according to the report by JLL, the demand for these spaces is on a high specifically in the Asia Pacific region than elsewhere globally. This is another hint that Asia is moving towards these spaces as they provide greater access at lower costs than anything else.
As time goes by, more and more clients are opting towards these spaces, as they are more comfortable and easy to access. Clients in Singapore have already taken the space in Distrii Republic Plaza, which rented out their entire 5th floor for this purpose. Distrii is a Chinese coworking space operator that operates a large building and has had 60% of this building occupied for coworking space.
There are many other companies like Distrii who are giving away these spaces at affordable costs. Even if the costs are seemingly high, they still don’t match the investment that is needed to have your own space up and running.
As of now, there are many coworking spaces in Singapore that offer the best of facilities to their clients; big rooms, great space, cleanliness, equipment and lots of other things are all part of these spaces.