Better technology, the highest health and safety standards and improved employee engagement and working experience
Flexible workspace take-up in Singapore experienced record growth in 2019, bringing the total flexible workspace stock in Singapore to 3.5 million sq ft. But the effects of COVID-19 is reshaping its position and overall demand.
Director of Occupier Services, Bastiaan van Beijsterveldt, shares what we can expect from this rapidly evolving sector.
Q: How has the overarching economic context impacted the flexible workspace sector?
So far in 2020, market activity has been subdued, with Singapore going into a Circuit Breaker period on 7 April before transitioning to safe re-opening measures in June (we are currently in Phase 2).
Since then, flexible workspace operators have had requests for rental waivers from occupiers - we understand that the majority of them have shared government-provided tax rebates with their clients.
Related content: Flexible Workspace Outlook APAC 2020
"The scale of the [flexible workspace] sector creates an ability to offer a range of products to assist occupiers in executing their occupancy strategies, post COVID-19."
Q: What can we expect for the office space post COVID-19?
We expect flexible workspace operators to play a key role in the return to work for many enterprises in Singapore. The scale of the sector creates an ability to offer a range of products to assist occupiers in executing their occupancy strategies, post COVID-19.
Arcc Spaces One Marina Boulevard: Arcc Spaces newly-launched flagship centre in Downtown Core Singapore (Image: Arcc Spaces)
Occupiers have to rethink their real estate strategy and rationalise their portfolio. The benefits of flexible workplace are undeniable and there are many different models available to tailor to the varying needs of a business.
Q: How will flexible workspace operators impact the overall Singapore Office market?
While the demand driver last quarter was mainly the Flexible Workspace sector which had already committed to expand, we expect flexible workspace operators to slow down their pace of acquisition in 2020.
"...Occupiers will look for [flexible workspace] operators who can provide holistic offers and manage their employees in a safe environment. The safety of these on-demand spaces will be a priority."
We anticipate flexible workspace operators to incorporate better technology, improve meeting experience, cultivate community by promoting wellness programs and thoughtful learning opportunities as they aim to differentiate themselves in the market.
Artist impression of JustCo at OCBC Centre East (Image: JustCo Global)
We also predict that occupiers will look for operators who can provide holistic offers and manage their employees in a safe environment. The safety of these on-demand spaces will be a priority and this will require operators to adopt the highest health and safety standards, including increased levels of cleaning and sanitisation, ventilation and social distancing measures.
Looking for a flexible workspace? Check out these flexible workspace listings available for lease or reach out to our team of experts to find out if flexible workspace works for your business.
You may also like:
- Flexible Workspace: Rethinking your Corporate Real Estate Strategy
- The Evolution of Flexible Workspace
- Real Estate Talk: Singapore Office Market - Q&A with Rick Thomas
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