“DIDN’T ADD UP”?
When 42-year-old Joscelin Kwek started a PR and marketing agency during the pandemic, the goal was to try and avoid office rental fees while having a space that could accommodate what were, at the time, ever-changing work arrangements.
Rented seats at WeWork fit the bill then. But as the size of Ms Kwek’s team grew, using a co-working space became less cost-effective and it “just didn’t add up” to keep buying more seats, she said.
Late in 2023, she decided to secure an office space which she currently shares with two other companies. It has saved her up to S$5,000 (US$3,717) a month.
Having a dedicated office space has created a sense of belonging and committing to it also meant committing to growing the company, which has assured her employees, said Ms Kwek.
Real estate agency Huttons Singapore’s senior director Lee Sze Teck said that as a company grows, it might want its own office space and address for branding if not privacy purposes as well.
But the emergence of artificial intelligence, flexible work arrangements and cost-cutting measures are all factors affecting demand for office space, he noted.
“Even with more workers returning to office, the demand for office space is growing at a slower pace, and some companies are reducing their need for co-working space,” he added.
Despite headwinds, demand for office space is still projected to be stronger moving forward – and demand for co-working spaces may grow in tandem, said Mr Lee, though he suggested that consolidation may take place as operators seek operational efficiencies and profitability.
Mr Piers Mallitte, who heads the Workthere office space rental arm of real estate services firm Savills, similarly said that the traditional office market isn’t going anywhere, with landlords continuing to see the benefit of direct leases with tenants.
Yet with a co-working operator there are also plus points such as shared costs, he added, describing Singapore’s co-working market as “positively mature” and still growing.
For Ms Priscilla Cheong, the founder of a social media agency, the freebies that come with her JustCo membership – coffee, water, snacks – amount to it being “cheaper than going to Starbucks” to work.
Not having to compete for power plugs and seats, and having multiple locations to choose from, are other advantages that have made it worthwhile.
She signed up with the co-working space after suffering a lack of productivity at home to begin with. But there are times when the comfort and convenience of being able to ply her trade out of her house prove too hard to resist.
“For months where I don’t really go as often, I feel like I just wasted my money,” said Ms Cheong, who’s on a six-month plan. “I haven’t decided yet, I might cancel it.”
