A growing number of millennials has given rise to an alternative to office buildings as more independent professionals opt for a new working environment.
Co-working space, a setting that allows individuals to share office space and its facilities while pursuing their own business activities, has become a popular trend around the world.
While co-working space has become common in some countries, it has only recently begun to emerge in Thailand.
In the past five years, co-working space worldwide has increased from 3,400 locations in 2013 to approximately 13,800 projected by the end of 2017, according to Deskmag.
The growth was due to the rise of start-ups, which prefer flexibility in their work space and support from technology that allows digital nomads to work anywhere at any time.
In Thailand, the number of co-working space has grown from fewer than 20 to over 100 locations over the past five years. However, unlike in many countries where co-working space tends to be in office buildings, most co-working space here is in standalone cafes with some work facilities.
Recently, we have seen some co-working space operators in Bangkok shifting from operating merely in retail space to providing the service in office buildings. Some serviced office operators, such as Regus, have co-working spaces in their centres.
From the perspective of a landlord, the advantage of having co-working space in an office building is to improve occupancy and enhance the diversity of the workplace in its building.
Most co-working space operators provide meeting rooms for rent. This can also be used as a facility for other office tenants.
The downside of this trend for landlords of traditional buildings is that it can be hard to monitor end-users, creating a security issue. For users, working hours are less flexible compared to those in standalone buildings or retail space.
From the perspective of an end-user, co-working space in an office building offers more car park space compared to those in most standalone buildings.
Landlords seeking to diversify services at their office buildings can consider either partnering with co-working space operators or establishing their own brands. This will also enhance their sale opportunities as the start-ups grow because they may need more space for expansion and may choose to commit to a three-year lease for traditional office space within the building.
So, what does the future of co-working space in Thailand look like? While co-working space is increasing in popularity, it still currently only caters to a small demographic that wants the lifestyle of working in a co-working space as most people still work in traditional offices.
However, with the growing numbers of both millennials and big corporations opting for such a choice, co-working space in Thailand may become a more popular option for office buildings in the future.
Thatchanan Siddhijai is a manager and Aishwarya Bajaj is an analyst at CBRE Research and Consulting, CBRE Thailand. They can be reached at bangkok@cbre.co.th Facebook: CBRE.Thailand Twitter: @CBREThailand LinkedIn: CBRE Thailand and website: www.cbre.co.th
