New research has revealed that collaboration is king in today’s workplace as the popularity grows for co-working spaces.
The latest research shows that there were 7,800 co-working spaces available globally in 2015 which was a dramatic increase from just 75 spaces in 2007.
Western locations like New York and London, which each contain at least 120 co-working spaces, currently lead the pack in co-working options but the phenomenon is gaining momentum in the Asia Pacific region, where an estimated 300 co-working spaces can be found in gateway cities including Hong Kong, Singapore, Shanghai, Tokyo, Sydney and Melbourne.
Sydney and Melbourne are home to around 60 co-working spaces, with major operators including Hub Australia, Jelly Coworking Meetup and WOTSO Workspace.
By contrast, Tokyo is home to roughly 100, while Hong Kong, Singapore and Shanghai host 40-60 each.
Local and regional co-working space operators still dominate in Asia Pacific, accounting for a 60% market share. However, several international players are expanding aggressively.
CBRE Workplace Strategy Director Matt Strudwick said technology had liberated organisations from the traditional view of the office being the place to work.
“Organisations are using a mix of spaces to provide an attractive proposition to their employees, service their clients more effectively and drive out some of the fixed costs of traditional office space,” he said.
“Employees have been empowered to work from client locations and from home in the past, but co-working spaces offer something more.
"Co-working spaces are conducive to fostering and enhancing an entrepreneurial culture and a sense of team.”
CBRE Asia Pacific Head of Research Dr Henry Chin said competition among co-working space operators was intensifying as they open more centres, lease larger spaces and increase their presence in prime areas.
“Co-working space operators need to plan expansion carefully, keep costs in check and be aware of this increasing competition—as well as conducting thorough assessments of supply and demand dynamics,” he said.
“While the rise of co-working space in Asia Pacific is by no means a disruptive threat to the traditional office format or leasing model, it does have a number of implications for occupiers and landlords alike, for example pointing to the need for a new approach towards office design to facilitate better collaboration and interaction between people.
"Landlords may want to consider whether to lease space to co-working operators or develop their own co-working platform following a detailed evaluation of the costs and benefits.”