Singapore Coworking Spaces

Singapore Coworking Spaces See Higher Demand From Global Firms

SINGAPORE – Local coworking space operators are witnessing higher demand from multinational corporations (MNCs) seeking office space in Singapore, with such clients now accounting for a huge percentage of their member base, according to a report from Today that was updated on Monday (30 May, SGT).

For instance, WeWork’s General Manager for Australia and Southeast Asia, Balder Tol, revealed that they have seen a “significant increase” in members originating from MNCs with over 500 full-time staff in the past two years, as the COVID-19 pandemic compelled people to work from home (WFH) or at offices with lower capacity limits.

These global companies now make up more than 50 percent of WeWork’s members in Singapore, he disclosed.

Moreover, the coworking space operator’s occupancy in Singapore grew by 20 percent year-on-year in March 2022. During the same month, they recorded the highest number of workers using their workspace since the onset of the virus outbreak.

For WeWork’s newest coworking centre at 21 Collyer Quay, over 80 percent of the workspace will be occupied by large firms. In particular, global risk management and advisory company Willis Towers Watson (WTW) had agreed to take up space at the new outlet, which will open in 3 phases beginning July 2022.

Similarly, JustCo noted that large enterprises are expanding their usage of coworking spaces. The coworking space operator defines large enterprises as companies with over 1,000 staff and these often have regional or global presence.

Previously, these large enterprises secured an average of 73 JustCo workstations in Q4 2021, but this increased to 85 during the first three months of the year.

Desmond Sim, CEO of property consultancy Edmund Tie, said there’s a rising trend of large MNCs looking to assign part of their workforce in coworking spaces, as they adopt a “hub-and-spoke” strategy.

“They usually have a traditional lease space to put their ‘core’ team and a coworking space for other employees who can adopt flexible work arrangements,” he explained.

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