Co-working space seen as boon for office landlords and tenants

Singapore

CO-WORKING spaces, a concept which made its way here six years ago, can be a hedge for office landlords against a wave of new office completions. Rather than engage in an intense price war on rental incentives and subsidies, developers can take a dip in this "blue ocean" to gain a competitive advantage over their peers, Cushman & Wakefield says in a new report.

One way is to carve out undesirable or non-performing space for tenants to benefit from the option of renting the co-working space on a needs basis. Developers may also consider bundling a portion of the vacant space with committed space under a "co-working concept" for quality anchor tenants.