IWG opens two new co-working spaces in S’pore amid flexi-workspace growth

International Workplace Group (IWG) has added two new co-working spaces to Singapore in response to the increasing demand for flexible work arrangements. The first office, OpenOffice, opened on Sept 1 at Fortune Centre, occupying 640 square feet of space on the 16th floor. Just a month later, on Oct 1, IWG launched its headquarters co-working office at 1 Liang Seah Street, which spans approximately 2,000 square feet within a shophouse building.

Eventually, IWG plans to expand the Liang Seah Street office to a total of 5,000 square feet. The OpenOffice brand originated in Japan, while the Liang Seah Street office is based in the United States, but both are now managed by IWG. These additions bring the total number of IWG's flexible work spaces in Singapore to six, complementing the other four brands - Regus, Signature, Spaces, and No.18, situated in the Central Business District (CBD), Marina Bay area, and Changi Business Park.

About 65% of IWG's clients in Singapore are multinational corporations, with the remainder being small and medium-sized enterprises (SMEs). Most of these clients operate in technology, artificial intelligence, or finance. Monthly subscriptions to IWG's flexible work spaces typically range from $1,600 to $7,000, depending on the office size and configuration.

IWG's country head for Singapore, Malaysia, and Brunei, Mr. Vijayakumar Tangarasan, noted that occupancy rates for IWG's offices in Singapore hover around 70%, reflecting the high demand. Due to limited office space availability in the CBD, IWG has expanded its search beyond the central business district for future flexible work spaces.

The AI and technology sectors have driven the demand for limited Grade A office space, causing the overall CBD office vacancy to drop to 5.9%, the lowest in the past 10 quarters. IWG intends to open more flexible work offices outside the CBD, including Paya Lebar, with the goal of growing its spaces by 10% to 20% year-on-year. The rise in demand for flexible work spaces is attributed to companies' desire to avoid significant capital expenditures in uncertain environments.

They prefer a more adaptable solution that allows them to relocate their offices as needed. In the co-working scene, Singapore also hosts various local and international providers such as JustCo, The Work Project, The Great Room by Industrious, The Hive, The Executive Centre, and Arcc Spaces. Homegrown company JustCo recently announced plans to take up five levels of co-working and retail spaces, along with an additional five levels of co-living apartments at Orchard Point.