Our Colliers Experts discuss and update us on the flexible workspace sector, its 2021 outlook and potential growth. See what could be!
Listening time: 10 minutes
Colliers Singapore Property Insights podcast is our podcast series where Colliers Experts comment on the latest real estate news and provide their advice on how to maximise the potential of property.
2020 has been the catalyst for a structural change in real estate. Since the beginning of the year, we have started to see the repercussions of the COVID-19 pandemic, and we now make sense of its long-lasting impact. We have recently published our Q2 2021 Office quarterly report and have observed that demand continues to come from Technology and flexible workspace sectors.
In this episode, we have June Chua, Executive Director, Head of Tenant Representation and Patrick Gidney, Senior Director of Occupier Services, to shed some light on the key trends in the flexible workspace sector and provide their insights.
- The number of flexible workspace centres has grown by 3% in 2020 and is expected to see a further 3% increase in 2021. Our forecasts for growth in 2022 and 2023 are 5%, which is a conservative estimate from one of our experts.
- Better financed co-working operators have rationalised costs, improved liquidity, and are better positioned to take advantage of the growing demand.
- Growing competition will lead to better-designed co-working centres, more customer-centric approaches from the operators and with the size of centres getting bigger, there will be more options for larger enterprises.
- The growing demand for hybrid working may push companies to look at the balance between their core office space and home working. This will also lead to growth in the flex sector in suburban locations as a 3rd option.
Ultimately, with regards to hybrid-working, there is no one-size-fits-all solution, and it will come down to an organisation’s unique goals, business functions operating in Singapore, and corporate culture that will determine the best balance between office and work from home and co-working. Most major property owners now understand the value of providing flex to tenants in their office buildings, and the true differentiator will be how they integrate flex workspaces into their new developments.
Listen to the full Colliers Singapore Property Insights Podcast – episode 5 | Flexible workspace in focus (10 minutes) below.
Contact our Colliers Editorial team here.