2019 will see the flexible workspace sector evolve with new iterations that will continue to disrupt traditional views of what the sector is.
2019 will be a defining year for the flexible workspace sector in Asia Pacific, as it emerges from a period of impressive expansion to enter a new phase of maturity and evolution.
The growth of flexible workspace across the region may moderate from the heights reached in 2018, but the sector is still poised to make significant strides this year. With tenant experience becoming the cornerstone of commercial real estate strategy, operators will raise the bar for design and innovative amenities, transforming flexible workspaces into lifestyle destinations in their own right. More building owners will forge alliances with operators or create their own flexible workspace offerings, adding to the sector’s diversity and sophistication.
Markets such as Singapore, Hong Kong and Australia will continue to lead the charge, with the sector growing more entrenched in emerging markets like India, second and third tier Chinese cities and the Philippines. Local and international players will jostle to meet robust demand both from corporate occupiers integrating flexible workspace strategies into their portfolios, and small enterprises and startups seeking non-traditional office structures.
The global economy has entered a testing period and the flexible workspace sector will not be immune. Yet it is also clear that the rise of flexible workspace in Asia Pacific is rooted in enduring trends, which should ensure flexible workspace contributes to the vibrancy of the region’s commercial real estate markets throughout 2019 - and for years to come.