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Flexible Workplace | The value for property owners

flexible workspace, colliers blog

Most major property owners would now understand the value of providing flexible workspace to tenants in their office buildings, what should they consider when integrating flex into their portfolio?


As the flexible workplace industry continues to grow and the market recovers, what do landlords need to be thinking about when revisiting their tenant mix and should they consider increasing the flexible workplace's share in their portfolio? 

How to begin integrating Flexible Workspace into your portfolio 

Undoubtedly, most major property owners would now understand the value of providing flexible workspace to tenants in their office buildings. The starting point and most significant decision will be to determine how to set this up, which I would like to put into three broad buckets: 

 1) To simply outsource to a 3rd party operator through a simple landlord/tenant relationship, 

2) Create a partnership with a 3rd party operator where in effect, it is a jointly owned business or, 

3) For the landlord to operate themselves.  

flexible workspace, colliers blog

In Singapore, quite a few major landlords are now choosing to run their own co-working brands. However, operating a flexible workplace centre may turn out to be labour intensive and require different expertise from what most developers have in-house. Therefore, some owners may quite possibly revert to the outsourced model over time.  

Factors that affect Flexible Workspace integration

Another critical point is assessing how a developer integrates flex into their new development. We are starting to see some good examples of this in Singapore, such as the upcoming development - Guoco Midtown. We can expect developers on future projects to put the same design focus on the flex component as the other key features such as the F&B amenities. Some of the considerations will be around the location of the flexible workplace in the building, how it flows with the office community, integration with technology and brand choice.  

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Ultimately, the success of a co-working centre is determined by the sales and demand generated by the operator. The bigger corporates tend to navigate to a few key global partners for co-working, so if it is an asset looking to attract these types of occupiers, owners may want to closely assess each operator's sales platform and their customer pool.  

Interested in finding out more about flexible workspace? Listen to the full Colliers Singapore Property Insights Podcast – episode 5 | Flexible workspace in focus (10 minutes) below. 

 

  

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Patrick Gidney

Senior Director

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Patrick is a Senior Director in our Occupier Services Team in Singapore. Patrick's primary focus is building relationships with our occupier clients in Singapore and ensuring the delivery of memorable services to accelerate their success.  Patrick started joined Colliers' leadership team in 2021 to collaborate with the Occupier Services Team and drive exceptional results. 

Passionate about representing the interest of tenants, Patrick has been providing Tenant Representation services to clients for over 15 years. Patrick has been focusing on the Singapore market for over ten years and was previously based in Vietnam and London, where he trained as a Chartered Surveyor.  

Patrick most recently worked at a leading international flex space operator; this has given him unique insight into the co-working and serviced office industry. This will further strengthen our expertise and lead our clients into the future.  

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June  heads up the Office Services team in Singapore, and is responsible for ensuring the  team's delivery of quality real estate advice and the execution of leasing transactions across the office and industrial markets.

June has 30 years of office and industrial leasing experience in Singapore, and has provided strategic advice to numerous MNCs  on their real estate requirements to meet the mid to long term business needs. She is equally well-versed in project marketing assignments, and has assisted various landlord clients to position their property to secure the optimal tenant mix for their properties.

 

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