WeWork: Keeping abreast of office-use trends
By Timothy Tay
/ EdgeProp Singapore |
Tol: In Singapore, we continue to see the growth of All Access with a 35% increase in bookings y-o-y. For On Demand, we tracked a 68% increase in bookings y-o-y. (Picture: Samuel Isaac Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - As the demand and nature of hybrid work evolve after the pandemic, and flexible work arrangements become more entrenched among companies here, co-working operators need to stay ahead of office-use trends to remain relevant and competitive in the market, says Balder Tol, general manager of Australia and Southeast Asia, WeWork.
Tol says that in 2022, many companies, including existing WeWork tenants, experimented with different work arrangements to find the set-up that best suited their needs. “Last year was a year of exploration for us as well, where we tested and explored different solutions and products,” says Tol.
For WeWork in Singapore, this means taking a more serious look at expanding its workplace offerings outside of the traditional CBD and into suburban locations. The purpose of the office has also evolved with a greater emphasis on collaboration, and proximity to amenities is a more crucial consideration.
The 18th floor of 21 Collyer Quay, WeWork’s 21-storey flagship location in Singapore. (Picture: Samuel Isaac Chua/The Edge Singapore)
Furthermore, the co-working company plans to double down on its On Demand and All Access products, which have seen strong take-up rates as more people return to the office.
Making the office commute-worthy
According to WeWork, Singapore is one of the highest adopters of hybrid and flexible working in the Asia Pacific region, slightly bested by the take-up rates in Australia and New Zealand. But, in general, most organisations differ on the level of hybrid working arrangements they allow.
“For some companies, they may allow one day of working from home in a week, while others offer more leeway to let employees choose where they want to set up for the day,” says Tol. He adds that long stretches of working from home during the pandemic have convinced some employees and their employers that a permanent flexible solution is possible in the long term.
“Many firms are actively testing this as one of the moves to design and identify permanent workplace arrangements, as part of larger change management procedures,” says Tol. “Thus, we see nuances on what the most productive environment for certain groups or departments to work in is.”
Recent employee feedback highlights demand for office spaces that are worth the commuting time, with more emphasis on in-person collaborations, says Tol. (Picture: Samuel Isaac Chua/The Edge Singapore)
When people do need to go into the office, feedback from WeWork members shows that most employees want office spaces that are worth the commuting time, says Tol. Underlying this is a greater desire for in-person collaborations and relationship-building between colleagues and peers, as well as developing a common company culture, he says.
“It is typically younger team members calling for more collaborative opportunities in the office. The ability to receive one-on-one mentorship while in the company is a key consideration for them,” says Tol.
These days, offices compete with the comforts of working from home, especially among more mature employees with space to set up an office or study in their homes, says Tol.
Contrary to convention, Wednesdays now see the highest member traffic throughout WeWork’s locations in Singapore. Office usage data from WeWork shows that Fridays have become a popular day for teams to mingle, while Mondays are often shunned and see the lowest traffic and footfall throughout the week.
Partnerships to pave suburban growth
With these changes in hybrid working arrangements in Singapore, WeWork is taking a closer look at how it can expand its presence into locations that are closer to homes and where the commute is shorter.
“As we explore the possibilities of expanding into suburban locations in Singapore, we are currently looking at it as part of a thought process of a possible partnership model in the future,” says Tol. “Building the types of WeWork locations, as we have done so far in the CBD, is unlikely to work in most of the suburban locations here.”
WeWork will complete the furnishing of its last four floors at 21 Collyer Quay this year. (Picture: Samuel Isaac Chua/The Edge Singapore)
He explains that WeWork members would need to utilise these spaces more than twice a week for the location to be commercially viable and ensure that a community presence can be sufficiently nurtured.
“However, we are exploring right now ‘partnership spaces’, in the sense that they are not necessarily WeWork-built spaces, but locations where we can help provide the access that our members can utilise and we can build a viable commercial business model,” says Tol.
He adds that it is landlords who are actively approaching WeWork to discuss such partnership possibilities. “Many of them are finding it difficult to re-create the same sense of energy and vibrancy that typically surrounds an activated co-working location such as WeWork. It is this kind of placemaking effect that is the core of our business.”
But the caveat is that not all types of suburban locations have the type of space that would facilitate the standards of a WeWork-branded location, says Tol. “On the other hand, we are seeing more and more landlords inviting us to go into their spaces as a facilitator, opening up access to other tenants in the building or to WeWork members,” he says.
All Access and On Demand
This bodes well for WeWork, which already plans to build up its WeWork On Demand and WeWork All Access products. These products have grown more popular as more people return to the office or need space outside their homes to work.
WeWork On Demand is a pay-as-you-go workspace product for individuals looking for hot-desk access or meeting rooms by the hour. WeWork All Access includes one co-working space booking per day, as well as the ability to book meeting rooms by the hour and private offices by the day.
All Access is priced at $399 per month, and On Demand ranges from $14 per seat per hour for meeting rooms to $39 per day for co-working space access.
The entrance to WeWork 21 Collyer Quay. (Picture: Samuel Isaac Chua/The Edge Singapore)
“WeWork is starting to become a platform rather than just a real estate solution. And that is the evolution you will continue to see for WeWork. With such partnerships in the future, our All Access subscriptions not only open up our WeWork locations in the CBD, but also our partner, non-WeWork spaces as well,” says Tol.
This also means that the company will continue to focus on improving its All Access lounges to facilitate its expected uptick in demand from this user group, he says.
“All Access has been a key driver for our business globally, where we have seen a 56% increase in revenue y-o-y. In Singapore, we continue to see the growth of All Access with a 35% increase in bookings y-o-y. For On Demand, we tracked a 68% increase in bookings y-o-y in Singapore, supported by the full opening of borders and return of business travel,” says Tol.
The All Access lounge at 21 Collyer Quay. (Picture: WeWork)
Last September, WeWork unveiled its flagship location in Singapore at 21 Collyer Quay, its 14th location in the city-state. The co-working operator occupies the entire 21-storey, Grade-A office building. Given its scale, WeWork has gradually completed its flagship space in phases, with the last four floors due to be completed this year.
“These floors will focus on tailored solutions and the set-up is being finalised for the future member. We are currently in talks with both existing and new enterprise members who are looking to either expand or establish operations in Singapore,” says Tol. Overall, WeWork’s total occupancy across its Singapore portfolio is 82% as of December 2022.
Mall spaces
Apart from high-grade office spaces either in the CBD or suburban locations, WeWork says that it has seen its co-working locations in Funan and Suntec become the most popular choices among its On Demand and All Access members.
WeWork observes that its space in the Funan shopping mall saw the highest number of bookings across its entire Singapore portfolio last year. Its space at Suntec Tower 5 was the second most popular choice for meeting room and on-demand bookings in 2022.
“It is not just the office facilities, but also the surrounding amenities for a space, that make or break the success of the co-working space. Factors such as nearby eateries and commuting time from home could also factor into real estate decision-making,” says Tol.
The community space at WeWork’s Suntec Tower 5. It is one of the most popular picks for All Access and On Demand member bookings. (Picture: WeWork)
He thinks that building WeWork locations in malls will continue to be a challenge if the space is not deliberately integrated into the development. “But working with malls to have drop-in set-ups is an interesting value proposition,” says Tol.
Thus, more planning and testing will need to be done to assess the viability of future WeWork locations in shopping malls. But suburban locations with drop-in spaces that are facilitated by WeWork for a future “work near home” experience are an area that the company is going to start looking into.
Looking ahead, WeWork is reviewing its locations in Singapore with high demand and footfall, especially from its All Access members. Future expansion of these spaces could take place in its 21 Collyer Quay, 22 Cross Street and Suntec Tower 5 locations.
“Beyond increasing space for All Access members within our current locations, I want to ensure that our spaces continue to be functional to align with our members’ intentional return to the office, with additional amenities such as lockers and also shared facilities such as Mothers’ Rooms, Wellness Rooms and meeting rooms,” says Tol.
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