Landlords in Hong Kong and Singapore are expected to continue allocating space to flexible office operators as multinational corporations reshape the sector’s risk profile and fuel long-term demand, according to industry experts.
A major driver behind this shift is the rapid change in who uses flexible workspaces. Global companies now represented 41 per cent of Asia-Pacific flex office users, the highest proportion worldwide and nearly triple North America’s 14 per cent, according to Piers Mallitte, head of Workthere APAC at Savills.
This marked a departure from the early days of the sector, when operators relied heavily on start-ups and small firms, analysts said.
“The big game changer is risk profile,” said Mallitte. “Flex operators today are delivering creditworthy multinational tenants, not risky start-ups. It’s not always foolproof, but operators and landlords complete enough due diligence and checks before occupiers receive the keys.”
Multinationals are using flex space strategically to establish a footprint quickly, analysts say. Photo: Handout
The contrast between Hong Kong and Singapore’s office fundamentals further explains why landlords are reassessing flexible workspace.