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:-
APAC Flexible Workspace Market
Related Reports:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
