Chart of the Day: Singapore's flexible office market expanded threefold in 2013-2018

An estimated two in five office buildings have a flexible office component.

The flexible office market has seen unprecedented growth in Singapore with the number of such set-ups more than doubling and market size expanding by three times in the five-year period during 2013-2018, according to property consultant CBRE. From over 500,000 sq ft in 2013, flexible offices are estimated to occupy around 2.5 million sq ft in 2018. 

Approximately two in five office buildings in Singapore currently have some sort of flexible office component as of June 2019, signifying higher adoption and openness to agile workplace strategies. 

Also read: Check out the largest co-working spaces in Singapore

"Not resting on their laurels, these flexible space operators have begun diversifying their businesses and income streams to include more enterprise focused solutions, managed office services and technological enhancements that better user experience," CBRE said in a report. "In some cases, they have delved into areas generally dominated by landlords and real estate brokers." 

Real estate giants are also actively entering the co-working fray. Ascendas Singbridge's own co-working brand, Bridge+, is a notable example. CapitaLand also recognised the growth opportunity in the flexible work sector and invested in premium hospitality-led The Great Room, took 50% stake in The Work Project and acquired the operations of Collective Works.

Similarly, CityDev took a 24% stake in Distrii and participated in its second funding round. Frasers Property also invested in JustCo with GIC and Keppel Land also tested out a pilot project, Workspace, before launching its own brand of serviced co-offices, KLOUD.