“Demand for office and event spaces is through the roof,” Colony executive director Timothy Tiah told FMT.
“As of the first quarter, we have already recovered to pre-pandemic revenue, and in Q2, we’re on track to surpass it,” he said.
Tiah said enquiries increased by 144% in the first quarter of 2022, adding that the pandemic had birthed new market trends that coworking space operators would likely capitalise on.
“We recognised a market for affordable office spaces that could be cancelled within a month’s notice,” he said, in reference to uncertain work conditions following the prolonged
lockdowns and more people working from home.
“Amid all that uncertainty, clients wanted more flexible office contracts with the freedom to choose their own terms and react to economic demands at any time.”
He said most of his clients were multinational companies with headquarters abroad which preferred renting coworking spaces instead of acquiring whole office buildings.
Co-labs Coworking director Benjamin Teo said despite low demand affecting the commercial and office leasing sectors during the pandemic, they were still able to sustain rentals catering to clients preferring flexibility.
He said they continued to receive enquiries and bookings for temporary remote offices, workspaces for hybrid workforces, as well as flexible and affordable office space.
“We also saw healthy tenancy renewal rates for 2021 and 2022, with an 80% average renewal rate for both years,” he told FMT.
Teo said companies were starting to realise the importance of coworking spaces, as it enabled them to enjoy the benefits and amenities of physical spaces, without the burden of heavy capital expenditure.
He said business was picking up with more corporations adopting a hybrid-working model to reduce operational costs.
“This model offers the best of both worlds, allowing for both flexibility and security,” he said.
Triune Centre founder Gabriel Ng agreed that recovery was going well, and that revenue was almost at pre-pandemic levels.
“Although business has yet to make a full recovery, it is well on the way – at 80% of previous earnings,” he said.
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