Advances in technology, a more mobile workforce, and unpredictable economic growth are starting to reshape the business environment and transform occupiers’ approach to office space decisions.
In the Bangkok office market, a traditional three-year lease with options to renew and the tenant fitting out the space remains the typical way of leasing office premises for most occupiers. Multinational firms, however, with offices in different countries, are increasingly looking for flexible lease terms as real estate costs continue to be one of their major concerns.
Companies are also looking at agile working where staff no longer have allocated desks and, in some cases, it is easier to get third parties to design, build, and operate this space rather than companies doing it themselves.
Some of the current pricing being offered by coworking space operators is very competitive and the cost combined with flexibility is making leasing from third parties more attractive than companies leasing space, fitting them out, and managing their own premises.
In Bangkok, coworking space has continued to be an emerging source of office demand and CBRE has leased over 44,000 sq. m., accounting for around 25% of CBRE’s total new office letting volume in the last 2 years, to coworking space operators.
International operators like JustCo, WeWork, Spaces, and The Great Room have opened multiple centres over the recent year some of which are scheduled to open this year. The aim of these operators is to revolutionize the way occupiers source office accommodation. They want to provide office space as a service rather than a traditional lease.
Not just targeting startups companies
CBRE believes that coworking space operators are not just targeting startups companies but also…
