How
is the Flexible Workspace market Positioned in APAC?
Growing traction to the concept of teleworking, the growing gig
economy, increasing number of start-ups and changing business strategies had
lead to the emergence of co-working industry. The growing millennial population
value work-life balance more than ever and increasing productivity and efficiency
of the workforce is becoming increasingly important for employers.
Tech enabled flexible workspaces enable employers to provide
flexibility to its employees and fosters employee retention. On the other hand
enterprises, MSME’s, start-ups and entrepreneurs can benefit from flexible
rental agreement which enable them to face the growing number of business
uncertainty and convert CAPEX to OPEX.
How
is the Flexible Workspace market Positioned in APAC?
Growing traction to the concept of teleworking, the growing gig
economy, increasing number of start-ups and changing business strategies had
lead to the emergence of co-working industry. The growing millennial population
value work-life balance more than ever and increasing productivity and efficiency
of the workforce is becoming increasingly important for employers.
Tech enabled flexible workspaces enable employers to provide
flexibility to its employees and fosters employee retention. On the other hand
enterprises, MSME’s, start-ups and entrepreneurs can benefit from flexible
rental agreement which enable them to face the growing number of business
uncertainty and convert CAPEX to OPEX.
The flexible workspace operators are evolving their offering according
to the evolving needs of the corporate world as the industry cements itself as
a mainstream real estate asset class.
More and more traditional building owners are participating in the
flexible workspace industry by switching from transactional business providers
to hospitality and service providers.
Landlords are either introducing their own co-working brands or they are
partnering with flexible workspace operators to inculcate flexibility in their
traditional office buildings.
The flexible
workspace industry in APAC has gained traction during the period
2016-2017 when the global market leader WeWork expanded its presence in
multiple countries in APAC. In response to WeWork’s expansion many local and
regional players have emerged in different countries and as of 2019, in most
the countries the industry is collective dominated by local players of that
particular country.
The flexible workspace industry in APAC is positioned to be at growth
stage. The supply in the industry has grown from ~ million sq ft in 2016 to ~
million sq ft in 2019, registering a double digit CAGR of ~% in the period
2016-2019. The industry has been evolving ever since its inception, with major
trends in the industry being growing number of local players, changing amenity
mix or amenitisation, increasing market consolidation, development of premium
design workspaces at premium locations and increasing landlord participation.
How
is Supply Segmented in APAC Flexible Workspace Market?
By Type of Flexible Workspace: In
the recent past, the flexible workspace industry in APAC has transformed itself
from a pure play co-working space provider
catering to freelancers, small business and start-ups to serviced or
managed space provider catering to the large corporate. Serviced space are
fully customized, furnished and managed private or semi-private facility,
maintained and operated by an operator for a client who agrees to pay a
composite fee for its use. In 2019, it contributed the maximum market share in
the overall supply of flexible workspace in APAC.
By Country: In 2019, more
than 60% of the total supply of flexible workspace in APAC was accounted by
India and China. The supply in Vietnam, South Korea and Japan has been growing
at the fastest pace during 2016-2019. Since the industry is highly localized
the trends in different countries differ. For instance, unlike India, China and
Philippines, landlords are not looking to enter into joint venture partnerships
because they have high bargaining power due to low availability of office
space.
How
Has the Demand Changed in APAC Flexible Workspace Industry?
Grade A amenities at affordable prices have attracted SMEs, start-ups,
freelancers as well as enterprises to occupy flexible offices. Flexible
workspace operators are creating co-working locations that fosters work-life
balance by inculcating various lifestyle spaces such as gyms, swimming pools,
gaming rooms, sleeping pods, cafes, restaurants and others. Operators are also
focusing on provision of business support services such as business concierge,
accounting & bookkeeping, HR & payroll management and others which
enable occupiers to concentrate on their core business. Operators are also
forming strategic partnerships with software providers, cafes &
restaurants, travel companies and others in order to provide added benefits to
tenants.
The various initiatives taken up by flexible workspace operators have
driven the demand of flexible workspaces in APAC. The demand in the region has
drastically increased from ~ million sq ft in 2016 to ~ million sq ft in 2019
registering a double digit CAGR of ~% during the time period 2016-2019. In
2019, the average occupancy rate in all the countries was estimated to be more
than 75%.
By End User Type: In 2019,
enterprises were the major occupier of flexible workspaces in APAC. Large enterprise
are opting for serviced spaces to avoid the hassles of long term leasing and
managing office spaces, which incurs heavy costs.
Key
Segments Covered:-
By Type of
Flexible Workspace
Serviced Spaces
Hybrid Spaces
Co-Working Spaces
By Country
India
Bangalore
Delhi NCR
Mumbai
Pune
Hyderabad
China
Shanghai
Beijing
Shenzhen
Hong Kong
Chengdu
Guangzhou
Australia
Melbourne
Sydney
Japan
Tokyo
Singapore
South Korea
Seoul
Philippines
Metro Manila
Vietnam
Ho Chi Minh City
Hanoi
By End
Users
Enterprises
MSME’s/Start Ups
Entrepreneurs/Freelancers
Key Target
Audience:-
Flexible Workspace Operators
Office Brokers/Aggregators
Commercial Real Estate Companies
Venture Capitalist and PE Firms
Real Estate Consultant
Office Furniture Providers
ICT Providers
Time Period
Captured in the Report:-
Historical
Period – 2016-2019
Forecast
Period – 2019-2025
Companies
Covered in the Report:-
APAC
Flexible Workspace Market
IWG
WeWork
The Executive Centre
Compass Office
JustCo
Servcorp
Local
Players in India Flexible Workspace Market
Awfis Space Solutions
IndiQube
Smartworks
91Springboard
Innov8
Vatika Business Centre & Co-working Spaces
InstaOffice
Local
Players in China Flexible Workspace Market
Ucommune
MyDreamPlus
Distrii
Kr Space
SOHO 3Q
People Squared
Atlas Workplace
Servoffice
Local
Players in Japan Flexible Workspace Market
ZXY
WorkStyling
Cross Office
Business Airport
LIFORK
Mitsubishi Estate (BRANDS: Finolab, The Premium
Floor, Inspired.lab, Global Business Hub, EGG JAPAN)
Expert Office
SENQ
Local
Players in Australia Flexible Workspace Market
Victory Offices
WOTSO Workspace
Workspace365
Corporate House
Asia Pacific Serviced Offices
Hub
Space & Co.
Christie Spaces
Local
Players in Singapore Flexible Workspace Market
The Work Project
The Great Room
Found8
ClubCo
Local
Players in Philippines Flexible Workspace Market
KMC Co-working Space
Clock In
Common Ground
vOffice
Project T Solutions
A-Space
Local
Players in Vietnam Flexible Workspace Market
Toong
Up Co-Working
G Office
Cogo Co-working
Dreamplex
eSmart
CirCo
Local
Players in South Korea Flexible Workspace Market
FASTFIVE
SPARKPLUS
BIZSQUARE & MoA
GARAGE
Heyground
For More
Information, refer to below link:-
Related Reports:-
Contact
Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
