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Table of Contents
1 What is Coworking?
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What is Coworking?
Definition:
Coworking Model
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Positive and Negatives of using a Coworking Space (User Perspective)
Security and privacy remains the main disadvantage of coworking spaces
Positives Negatives
(1) FlySpaces
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Positives and Negatives of renting to coworking operators (Landlords Perspective.)
Lack of control over final tenant mix and security is the main disadvantage of renting to coworking operators
Positives Negatives
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Financial Economics of Coworking Spaces
Renting of desks make up only 40-46% of coworking space operators revenue
Property Owner/Landlord
Mostly fixed long term lease
Revenue
Stream
Moving towards, revenue/profit sharing model with Coworking Space
Operators (higher upside, higher downside)
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Users of Coworking Spaces
Coworking space has become increasingly accepted by established corporations
Initially Today
Early Adopters Only Early Adopters + Mainstream Companies
Creatives According to WeWork:
Freelances 14 percent of its 80,000 members
Solopreneurs are employed by a company with
Startups (especially tech) 500 or more employees. The list
includes Dell Inc., McKinsey & Co.
and Salesforce.com Inc. Of the
world's 500 most valuable companies,
52 have employees working out of a
WeWork.
Both the number of coworking spaces and the number of members using coworking
spaces have been experiencing tremendous historical growth in the past (51% CAGR and
73% CAGR respectively)
Source: Desk Mag
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Key Trends in Coworking Industry - #1
The average number of members per coworking space is increasing
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Key Trends in Coworking Industry - #2
Coworking spaces are expanding even though they may be unprofitable
The rapid expansion of coworking spaces may lead to situations of localized oversupply
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Key Trends in Coworking Industry - #3
Coworking members, once acquired, are quite sticky
The stickiness of coworking members is one reason why coworking spaces are expanding even
though currently unprofitable
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Coworking Space in South East Asia
Brokers estimate that 10-15% of office stock in SEA will be occupied by coworking operators by 2030
Key Points
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Appendix: Property Developers who have ventured into Coworking Not exhaustive
Property companies either JV with coworking operators or launch their own brand
JV
Capitaland has a JV with Collective Works to launch Collective Works
Capitol Tower a 22,000 square feet space at level 12 of Capitol
Tower. This was the first coworking space in a Grade A CBD building
in Singapore
Keppel has their own coworking space at Keppel Towers that
measures 6,400 square feet in size.
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Appendix: Coworking Spaces in Singapore Not exhaustive
Number of 2 1 4 2 2 1
locations
Cheapest From 240 From 350 From 98 From 345 From 255 From 375
Hot Desk (40 hours of (Unlimited) (1 day hot (80 hours of (10 days of hot (unlimited)
Membership hot desk desk usage) hot desk desk usage)
usage) usage)
Dedicated From 700 From 500 From 750 From 770 From 729 From 580s
Desk
Private Room From 1,600 From 1,300 From 800 N.A. From 900 N.A.
Membership
International No, only SG No , only SG No, only SG No, only SG No, only SG No, only SG
chain?
Real Estate Capitaland Owned by
Partners? (50:50 JV for Keppel Land Around 40 coworking spaces in SG. 80% outside
Collective CBD
Works Capital
Tower) Prices are in SGD a month
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