Flexible workspace market in Asia-Pacific grows 6% from 3Q2022

Flex office space in Asia Pacific reached 87 million sq ft in 1Q2023, according to a sector report by CBRE. Regionally, technology companies accounted for the highest percentage occupier of flex space, followed by business services and finance-related companies. Singapore had a flex office penetration rate of 5.4%, translating to a total volume of 4 million sq ft in the city-state. CBRE says ongoing economic uncertainty is driving demand for flex space as companies focus on cost management. Survey results showed that over half of the respondents believed they had under-allocatedflex office space, and were looking to increase their use of it. It is expected that tech firms will continue to be the largest occupiers of flex space in the region this year, with demand also seen for event spaces, office access passes, and on-demand workstations.

As businesses look to focus on cost management in light of ongoing economic uncertainty, demand for flexible office space has seen a marked increase in the Asia Pacific region. According to a sector report by CBRE, the total volume of flex office workspace in the region reached 87 million sq ft in 1Q2023, which marks a 6% increase from the same period in the previous year.

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Tech companies accounted for the highest proportion of flex space occupiers in the region, making up 35% of total usage, followed by business services and finance-related companies. Singapore’s flex office penetration rate stands at 5.4% translating to a total volume of 4 million sq ft, while flex space in Grade A office buildings has increased from 3.1% in 3Q2022 to 3.5% in 1Q2023.

Results from a survey of occupiers reveal that over half of the respondents believed their allocation of flexible office space was underutilised, and that they intended to increase their use of it in the coming months. CBRE believes that tech firms will remain the sector’s largest adopters of flex office space this year, driven by a need for capital expenditure concerns and dedicated workspaces.

More demand is also expected for event spaces and office access passes, while on-demand workstations (pay per use) solutions are also likely to rise in popularity. With the potential for increased demand for flex space in the Asia Pacific region, it remains to be seen how this could affect the overall office supply in the coming years.