In the face of ongoing uncertainty due to Covid, flexible office spaces are on the rise in the Asia Pacific region for the third year in a row.
According to the latest report from Instant Group, the APAC flexible workspace market is set to overtake more established markets in the US and Europe with a 19 per cent increase in supply over the past twelve months.
The APAC region is now home to 10,000 flexible workspaces and seven out of the ten highest markets in the industry thanks to massive supply increases in Sydney, Jakarta and Singapore, and high levels of interest in Melbourne.
Flexible workplaces — also known as co-working spaces or shared offices — have become an increasingly popular choice for companies, offering a fully functional space with little capital needed, freedom to expand or shrink operations, and flexible leasing terms.
Due to thr economic pains of Covid, numbers are expected to temporarily drop back down into single digits, levelling out at around 6 per cent as businesses hunker down in existing offices or disappear altogether.
However, demand for these types of spaces is still expected to increase as younger generations of workers push for more short term, readily available spaces instead of large investments and long leases.
“We have seen across APAC a number of operators grow and bring great variety to the market. This shows that for those with a strong understanding of flex, who know the local market, and are willing to evolve with it, it will continue to be an exciting industry,” said Sean Lynch, managing director of The Impact Group in Asia-Pacific.
“As businesses, we face challenges that are outside of our control, but with the fierce competition growing across the region, this can only give more options to our clients and push us all to evolve.”