Viewpoint | Adaptive Spaces, Creating Resilience, Future Cities
Singapore Viewpoint - Singapore's Flex Space Market Bounces Back
November 25, 2022
- Occupancy at Singapore's flex space centres has recovered from the average of 50% to 60% during the course of the pandemic to a healthy level of 80% to 90% on average by Q3 2022, alongside the reopening of Singapore’s borders and resumption of back-to-office arrangements.
- In response to evolving occupier demand, flex operators are increasingly providing a more diverse space offering, with changes being made to pricing models, centre networks and technology.
- New models are emerging, with the management contract and partnership models becoming more popular as they benefit both landlords and flexible workspace operators.
- In the near term, the rate of flex space’s organic expansion could slow down, on the back of rising global economic headwinds and more conservative corporate real estate demand.
- In the longer term, the benefits of having a core-and-flex real estate strategy should see flex space continue to increase its prominence as one of the core tenant sectors in the Singapore office market.