Landlords in Hong Kong and Singapore are expected to continue allocating space to flexible office operators as multinational corporations reshape the sector’s risk profile and fuel long-term demand, according to industry experts.
A major driver behind this shift is the rapid change in who uses flexible workspaces. Global companies now represented 41 per cent of Asia-Pacific flex office users, the highest proportion worldwide and nearly triple North America’s 14 per cent, according to Piers Mallitte, head of Workthere APAC at Savills.
This marked a departure from the early days of the sector, when operators relied heavily on start-ups and small firms, analysts said.
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“The big game changer is risk profile,” said Mallitte. “Flex operators today are delivering creditworthy multinational tenants, not risky start-ups. It’s not always foolproof, but operators and landlords complete enough due diligence and checks before occupiers receive the keys.”
Mallitte said this “fundamentally changes the equation for landlords, and the financials support it too”.
The contrast between Hong Kong and Singapore’s office fundamentals further explains why landlords are reassessing flexible workspace.