The Executive Centre Opens Flagship Coworking Space At One Raffles Quay
SINGAPORE – Coworking space operator The Executive Centre officially opened its new flexible workspace at the North Tower of One Raffles Quay on 2 August 2021, reported The Edge on Friday morning (20 August, SGT).
The new coworking space was initially targeted for completion during the previous month, but its opening was delayed by the return to Phase Two (Heightened Alert).
Spanning 38,736 sq ft, the flexible workspace occupies an office space on level 49 and the penthouse floor on level 50. The first space can accommodate about 100 individuals, while penthouse premises can accommodate up to 300 people.
Previously, The Executive Centre’s coworking space in One Raffles Quay was situated on level 25. It had operated the premises in the past 14 years, but it was closed so that the company could focus on its new flagship coworking space.
At present, the new flexible workspace is 97 percent occupied. Most of the premises are taken up by a global Chinese tech firm, which have agreed to occupy the entire space on level 50 and a portion of the office space on level 49. The remaining space is being occupied by several financial firms.
The Executive Centre’s new coworking space at One Raffles Quay was previously leased by UBS Group in the last 13 years. But after it announced plans to surrender the workspace, the coworking space operator approached the property owner to secure the office space, which it did during the middle of last year.
The coworking space operator revealed that it managed to secure its major occupant due to good timing rather than any planned moves, as the Chinese tech firm signed the rental deal during the last quarter of 2020.
Moreover, The Executive Centre’s Managing Director for Southeast Asia Yvonne Lim shared that the Chinese tech firm had made some specific requests, including provision of more meeting rooms and open work areas instead of office suites. They also asked for their own kitchen and food preparation area, in addition to a canteen on level 50 with great views over Singapore’s central business district (CBD).
“Most enterprise solution clients we have typically request for their own food prep area and dining area, as part of their requirement for a more exclusive space and customisation needs that are based on their corporate guidance,” noted Li, adding that the Chinese tech firm was also very particular on air quality.
The rent of the coworking space is about 50 percent higher than the average market rent for a Grade A office space in Raffles Place, as One Raffles Quay North Tower is among the most premium Grade A office space available in the CBD.
“Based on our feedback, many members share that they are willing to fork out the extras for a premium location and the high-quality design, and our service standard,” shared Lim.
However, Lim revealed that the return to Phase Two (Heightened Alert) in May 2021 led to lower office space demand during the first 2 weeks, but take-up recovered from the 3rd week.
“So far, our sales conversions have been quite steady and consistent. In fact, our closing sales last month was higher than in June 2021. In terms of occupancy across of all centres in Singapore, we saw the start of the recovery in 3Q2020 but it did not rebound to 2019 levels.”
In the last few months, the average occupancy rate of The Executive Centre’s branches in Singapore averaged about 90 percent. In particular, that in One Raffles Quay reached more than 90 percent, while other outlets outside of the CBD recorded lower occupancy levels ranging from 80 percent to 85 percent.