Flexible workspace market in Asia-Pacific grows 6% from 3Q2022
By Timothy Tay
/ EdgeProp Singapore |
In Singapore, the proportion of flex office penetration in the overall office market is about 5.4%, which translates to a total volume of about 4 million sq ft in the city-state.
SINGAPORE (EDGEPROP) - The total volume of flexible office workspace in the Asia Pacific region reached 87 million sq ft as of March, which marks a 6% increase from September 2022, according to a sector report by CBRE.
Flex office spaces had penetrated about 4% of the total regional office supply by the end of 1Q2023. Meanwhile, the proportion of flex spaces in Grade A office stock also increased, rising from 3.1% in 3Q2022 to 3.5% in 1Q2023. This increase reflects the strong demand from flex space operators seeking to upgrade their centres to more Grade A buildings, says CBRE. Regionally, the top three occupiers in flex office space are technology companies (35%), business services (16%), and finance-related companies (12%).
In Singapore, the proportion of flex office penetration in the overall office market is about 5.4%, which translates to a total volume of about 4 million sq ft in the city-state. CBRE says ongoing economic uncertainty is strengthening the importance of portfolio flexibility and prompting a greater focus on cost management, driving occupier demand for flex space.
Based on a survey of occupiers in the region, more than half of the respondents believe that the proportion of flexible office space in their portfolios is under-allocated, and they intend to increase their use of it in the coming months.
The report by CBRE states that tech firms will continue to be the region's largest occupiers of flex office space this year. Meanwhile, capital expenditure concerns are driving a preference for dedicated workspaces. There is also a stronger demand for event spaces and office access passes. On-demand workstation (pay per use) solutions are also expected to rise this year.
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