The growth in the industry will be driven by expansion in tier 2, tier 3 and regions outside CBDs. In countries such as India, China, Japan and South Korea where the flexible workspace operators have already expanded in the tier 1 cities, operators will now expand their presence in other regions in the country.

Sydney, Hanoi, Ho Chi Minh City, Pune and Hyderabad are the upcoming markets for flexible workspaces in APAC.

The business strategies of flexible workspace operators in different countries are changing. In few countries operators are shifting their focus from rental to non-rental revenue streams. Joint venture model is gaining traction over the traditional lease model.

Expansion in Tier 2 and Tier 3 Cities: In China Flexible Workspace operators are expanding in tier 2 cities such as Wuhan, Chengdu, Nanjing, Hangzhou, Suzhou and others. Tier 2 cities are also developing their own co-working spaces such as Hi-Coffee from Chengdu and More+ from Wuhan. In India companies are focusing on expanding in cities such as Indore, Bhubaneswar, Calcutta, Chandigarh, Kochi, Lucknow and others. For instance, Incuspaze has centres in Indore, Kochi, Lucknow and Trivandrum.

Upcoming Cities: The supply of flexible workspaces in Sydney, Hanoi, Ho Chi Minh City, Pune and Hyderabad are expected to grow at a CAGR of 18.7%, 18.0%, 17.6%, 16.5% and 16.2% during the period 2019-2025F. In 2019, penetration rate of flexible workspaces in these five cities is below the average penetration rate of 3.1% in APAC which is an indicator of future scope in these markets.

Rental to Non-Rental Revenue Streams: In countries like China, Philippines, Vietnam and Australia the flexible workspace operators are changing their focus from rental to non-rental revenue streams such as business concierge services, accounting and bookkeeping, HR and payroll management, start-up mentorship, marketing and co-branding and others in order to bring business profitability and sustainability. In countries such as Singapore, India, Japan and South Korea the members are unable to trust these services and therefore this strategy is currently not working in these countries.

Changing Landlord-Operator Relationship: The business model in the industry is changing from the traditional lease model to joint venture model and management model. Landlords are willing to form a revenue sharing partnership with flexible workspace operators to cater to the flexible workspace needs of their existing tenants and to also attract individuals from the growing gig economy. In countries such as Singapore, that is facing a situation of tight office space vacancy, landlords have an upper hand and they are not looking to form joint venture relationships with the operators.

The report titled APAC Flexible Workspace Market Outlook to 2025- By Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By Country (China, India, Japan, Philippines, Australia, Vietnam, Singapore and South Korea) and By End Users (Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)by Ken Research suggested that the flexible workspace industry in APAC is growing owing to emergence of increasing funding, increasing demand from enterprises, growing market consolidation, movement to tier 2 and tier 3 cities, increase in focus on non-rental revenue streams and Change in IFRS Standards. The market is expected to register a positive CAGR of 14.2% and 16.0% in terms of supply and demand respectively during the forecast period 2019-2025F.

Key Segments Covered:-

By Type of Flexible Workspace

Serviced Spaces

Hybrid Spaces

Co-Working Spaces

By Country

India

Bangalore

Delhi NCR

Mumbai

Pune

Hyderabad

China

Shanghai

Beijing

Shenzhen

Hong Kong

Chengdu

Guangzhou

Australia

Melbourne

Sydney

Japan

Tokyo

Singapore

South Korea

Seoul

Philippines

Metro Manila

Vietnam

Ho Chi Minh City

Hanoi

By End Users

Enterprises

MSME’s/Start Ups

Entrepreneurs/Freelancers

Key Target Audience:-

Flexible Workspace Operators

Office Brokers/Aggregators

Commercial Real Estate Companies

Venture Capitalist and PE Firms

Real Estate Consultant

Office Furniture Providers

ICT Providers

Time Period Captured in the Report:-

Historical Period – 2016-2019

Forecast Period – 2019-2025

Companies Covered in the Report:-

APAC Flexible Workspace Market

IWG

WeWork

The Executive Centre

Compass Office

JustCo

Servcorp

Local Players in India Flexible Workspace Market

Awfis Space Solutions

IndiQube

Smartworks

91Springboard

Innov8

Vatika Business Centre & Co-working Spaces

InstaOffice

Local Players in China Flexible Workspace Market

Ucommune

MyDreamPlus

Distrii

Kr Space

SOHO 3Q

People Squared

Atlas Workplace

Servoffice

Local Players in Japan Flexible Workspace Market

ZXY

WorkStyling

Cross Office

Business Airport

LIFORK

Mitsubishi Estate (BRANDS: Finolab, The Premium Floor, Inspired.lab, Global Business Hub, EGG JAPAN)

Expert Office

SENQ

Local Players in Australia Flexible Workspace Market

Victory Offices

WOTSO Workspace

Workspace365

Corporate House

Asia Pacific Serviced Offices

Hub

Space & Co.

Christie Spaces

Local Players in Singapore Flexible Workspace Market

The Work Project

The Great Room

Found8

ClubCo

Local Players in Philippines Flexible Workspace Market

KMC Co-working Space

Clock In

Common Ground

vOffice

Project T Solutions

A-Space

Local Players in Vietnam Flexible Workspace Market

Toong

Up Co-Working

G Office

Cogo Co-working

Dreamplex

eSmart

CirCo

Local Players in South Korea Flexible Workspace Market

FASTFIVE

SPARKPLUS

BIZSQUARE & MoA

GARAGE

Heyground

Key Topics Covered in the Report:-

Supply-Demand Analysis and Supply-Demand Gap Analysis, 2016-2019

Value Chain Analysis

Revenue Streams

Organizational Structure of Flexible Workspaces

Marketing Strategies

Supply-Demand Analysis and Supply-Demand Gap Analysis, 2019-2025F

Competitive Landscape in APAC Flexible Workspace Market

Emerging Business Model

Country Snap Shots (Demand-Supply Analysis and Detailed Competitive Scenario including Heat Map

Analysis, Market Share Analysis and Cross Comparison Analysis)

Success Case Study

Analyst Recommendation

For More Information, refer to below link:-

APAC Flexible Workspace Market

Related Reports:-

India Flexible Workspace Market Outlook to 2025- By Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By City (Bangalore, Mumbai, Delhi NCR, Pune and Hyderabad) and By End Users (Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)

China Flexible Workspace Market Outlook to 2025 Driven by Increasing Investment in Technology and Shift in Focus towards Non Rental Revenue Streams

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249