Demand in the Asia-Pacific for such spaces seen growing at an average 10 to 15% annually as companies seek flexibility amid economic uncertainty.
COWORKING spaces are set to multiply across Singapore in the near term and become a real estate asset class.
While there are already more than 50 such spaces here, observers point to a young, still-growing and competitive market as new types of coworking operators emerge and existing ones launch new spaces.
Homegrown operator JustCo, for instance, is slated to open two branches at the recently-completed UIC Building and the upcoming Marina One in 2017.
Observers said that this demand is fuelled by an increased appetite from companies for workspaces that offer speed and flexibility in a time of global economic uncertainty, and that will allow them to grow or downsize as needed without being locked down by long-term rent.
Chris Browne, head of global occupier services (Asia-Pacific) at Cushman & Wakefield, said: "Traditionally, businesses were constrained by the time and cost of acquiring and fitting out new premises.
"The shorter leases and competitive costs of these spaces provide options for businesses wishing to scale up either at speed, on a project basis, or for a temporary period."
Coworking spaces are typically 10 to 30 per cent cheaper than traditional office spaces; they are also well-designed, close to amenities and attractive to the millennial workforce, according to the same report by Cushman & Wakefield and CoreNet Global.
In another study, millennials are found to make up 75 per cent of the global workforce by 2025.
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