Flexible workspace demand rises in S’pore

Higher demand: A man rides a bicycle along a street at the Raffles Place financial business district in Singapore. Demand for co-working space has been higher in sectors such as healthcare, education, e-commerce, e-sports and financial services. — AFP

SINGAPORE: Demand for co-working spaces in Singapore has increased markedly in recent months with signs of economic rebound and more people back at work in the office.

International Workplace Group (IWG), which has 24 locations across its co-working space brands here, noted that occupancy of its space in the Central Business District shot up 28% in December and January from previous months after the announcement of phase three of the reopening of the economy.

Membership has surged 40% compared with pre-pandemic days, said IWG country manager for Singapore and Hong Kong, Paul MacAndrew.

WeWork said its membership rose 20% from January to last month. It also recorded a 30% rise in members using their co-working spaces after the announcement last month that up to 75% of workers could return to their desks from April 5.

The recent rise of Covid-19 cases in the community, however, led to the call last Friday for employers to allow staff to work from home if possible.

Any tightening of regulations would affect the use of co-working spaces, though it is too early to say how much they will be affected.

Much of the demand, though, for co-working spaces is driven by business optimism and companies turning to more flexible work arrangements, observers said.

Leasing queries at CapitaLand’s flexible-working space Bridge+, which has two centres, have climbed with improved business sentiment.

Chew Peet Mun, managing director for workspace and residential at CapitaLand Singapore, said new members at its Robinson Road space include blockchain accelerator Tribe, UOB’s innovation accelerator The FinLab and fintech BondEvalue.

“As the economy improves, and companies have a greater appreciation for business continuity and operational resiliency, we remain optimistic about the demand for flexible workspaces at Bridge+, ” he said.

Brandon Chia, JustCo’s vice-president and head of Singapore and Indonesia, noted that there has been greater demand for options in suburban neighbourhoods, which can help businesses decentralise their operations and facilitate remote working.

Its recently opened sites in Tampines and one-north could capitalise on such opportunities, he added.

“We are receiving slightly more inquiries, with clients telling us that the length of leases is not as important as the flexibility to upsize or right-size their office space as needed.

“This flexibility is what traditional office leases lack, ” he said.

Demand for co-working space has been higher in sectors such as healthcare, education, e-commerce, e-sports and financial services.

Standard Chartered Bank signed a global deal with IWG in January that allows employees access to the latter’s 3,500 offices worldwide.

Charlotte Thng, the bank’s head of human resources for Singapore, Australia and Asean markets, said it started piloting a programme on April 1, in which 80% of its 10,000 staff here have more flexible work arrangements.

The IWG partnership that allows the use of co-working spaces is part of the flexible work initiatives, which include logging in from home, she said.

“Our employees in Singapore can choose to utilise this service occasionally, should their current home environment be unconducive for work and if their job role allows them to do so, ” Thng added.

Tech firm Affinidi has doubled its presence within WeWork spaces in under a year, the latter noted, adding that government agencies have also contributed to its growing membership.

WeWork is tracking “interest from enterprises in exploring hybrid and flexible workplace arrangements, as they continue to expand and establish regional hubs in Singapore”, said Samit Chopra, its managing director of international strategy and operations. — The Straits Times/ANN