Asia Pacific ViewPoint - COVID-19 Implications for Flexible Space: What's Next? June 2020
COVID-19 has exerted a profound impact on the market for flexible space - which includes both coworking centres and serviced offices – across Asia Pacific. The aggressive operator growth witnessed in recent years has now given way to a phase of consolidation.
While further short-term pain is likely in the coming months, the sector’s long-term fundamentals remain sound, supported by several major structural shifts. In particular, the enterprise market will play a more prominent role in driving demand as large occupiers are less exposed to cashflow risk compared to the traditional start-up and SME user base.
Landlords are advised to adopt a more proactive approach towards providing flexible space and take on a more service-oriented role. The coming years will see an increasing number of landlords entering into management agreements and hybrid-type approaches with flexible space operators.
This ViewPoint by CBRE explains how the flexible space sector in Asia Pacific has been impacted by the pandemic thus far; examines how operators have responded; discusses how the occupier view towards agility is evolving; and identifies strategies for landlords seeking to manage their exposure.