Co-working expansion continues unabated

The phenomena that is flexible / co-working space continues to grow at breakneck speed and shows no sign of tailing off, although we are entering a new phase of maturity and saturation point might not be that far off.

All the big players are still grappling for market share. JustCo has secured a further location at 51 Bras Basah Road (fka Manulife Centre). They have taken up two whole floors here, totaling over 50,000 sq ft and is expected to house over 5,000 people. This facility will be like many of the latest larger centres which will include hot desking, product showcase corner, games area and breakout space. It will also have phone booths, quiet pods and a nursing room. There is an event space for 180 people and multipurpose rooms for up to 50 people.

Heavy weight player WeWork, has agreed to lease the entire HSBC Building at 21 Collyer Quay totaling some 220,000 sq ft which is easily the largest such center in Singapore. This is scheduled to be functional in 2021, after HSBC relocate to Marina Bay Financial Centre later in 2020. It seems whole buildings are not uncommon for flexible work space operators now, with Hong Kong-based operator Campfire opening a 82,000 sq ft facility at 139 Cecil Street. This will comprise a 16-storey mixed use scheme with roof terrace, sky pool and roof top bar. There will be a mixture of co-working space, shared offices and private offices. There will also be F&B outlets, retail space, gym and recreational facilities.

Elsewhere, WeWork has secured six floors at Income @ Prinsep in Dhoby Ghaut, while JustCo has just opened another centre in China Square Central. Earlier this year, WeWork secured 100,000 sq ft of space in MYP Centre at 9 Battery Road (fka Straits Trading Building) and will start operations when current tenant Rajah and Tann relocate to Marine One later in 2020. The entire building 55 Market Street has been decanted of tenants and it is rumoured the new owner is targeting a co-working space operator to lease the majority of the building, but details have not yet been confirmed.

WeWork currently operate from Beach Centre, Mapletree Anson, City House, 71 Robinson Road, ARC 380, Manulfe Tower, Suntec Tower 5 and Funan. Income @ Prinsep, MYP Centre, Singapore Science Park, 21 Collyer Quay (HSBC Building) and are rumoured to be the new anchor tenant at PSA Building along Alexandra Road after PSA move to their new building in Pasir Panjang. They now have over 500,000 members worldwide.

JustCo operates from Asia Square, Marina One, 20 Collyer Quay, UIC Building, AXA Tower, China Square Central, 6 Raffles Quay, MacDonald House, Marina Square, Samsung Hub and 120 Robinson Road.

Click here to view our Q3 / Q4 2019 Office Market Review