More Coworking Spaces In Singapore’s CBD By 2022
SINGAPORE – Cushman & Wakefield (C&W) expects that coworking spaces in the city-state’s central business district (CBD) will expand considerably next year to account for about 5.5 percent of the Grade A office stock in the area, reported The Business Times on Thursday afternoon (23 December, SGT).
This is an improvement from 2020 and this year, when coworking operators leased only a total of 0.2 million sq ft of office space versus 1 million sq ft in 2019 alone, said the property consultancy.
Notable coworking space openings next year include WeWork’s anticipated launch of a 200,000 sq ft outlet at 21 Collyer Quay. This is expected to be the biggest flexible office space to enter the Singapore market and would boost prevailing islandwide flex space stock by roughly 6 percent in 2022.
At present, around 82 percent of the coworking spaces in Singapore are situated in the CBD, particularly in Grade A office buildings.
C&W said as occupier demand in the city-state’s CBD rebounds, coworking players will be more confident to directly lease space. It also projected that Grade A office rents here would increase by 4.6 percent in 2022 on an annual basis.
“The market could see a hybrid arrangement, where the co-working operator takes a direct lease and a management contract for different floors,” noted the property consultancy, adding that major coworking players like IWG, WeWork, and JustCo are projected to maintain their market dominance, making up over 50 percent of the market share here.
Looking ahead, C&W forecasts that incoming stock of newly newly-completed Grade A office buildings and business parks will cater to flexible workspace demand.
One primary driver for coworking space demand is the rapid expansion of tech firms in Singapore, while growth in demand for flexibility and “space-as-a-service” is another likely trend, as hybrid work arrangement becomes the norm.
“The value proposition of co-working spaces remains unchanged and offers increased flexibility and conversion of capital expenditure into operating expenditure,” added the property consultancy.
