The total number of flexible office space within the Asia Pacific region reached 87 million square feet as of March. This is an increase of 6% growth over September 2022, according to a report on the sector from CBRE.
Flex office spaces accounted for around four% of the regional office inventory by 1Q2023’s end. In addition, the percentage of spaces flex-based that are located in Grade A office space also grew by a significant amount, by 3.1% in 3Q2022 to 3.5% in 1Q2023. This is due to the increasing demand from operators of flex spaces who want to upgrade their centers to Grade A properties, according to CBRE. The top three regional users of offices that are flexible include technology firms (35%), business services (16%), and finance-related firms (12%).
In Singapore the percentage of flex offices in the office market in general is approximately 5.4%, which translates to around 4 million sq ft of city state. CBRE claims that ongoing economic uncertainty has increased the importance of portfolio flexibility, and is prompting an increased focus on cost control, which is driving the need for flexible spaces.
Based on a poll of the occupiers in the area over half those surveyed believe that the amount of office space that is flexible within their portfolios isn’t being properly allocated and they plan to expand their utilization of it over the upcoming months.
The report from CBRE says that tech companies will remain the biggest occupiers in the region of flexible office space this year. Concerns about capital spending have led to a rise in demand for workspaces that are dedicated. Also, there is a growing demand for event spaces as well as offices access cards. Workstations on-demand (pay per usage) services are predicted to increase this year.