Major flexible space operators have more than doubled in the Asia Pacific from 2014 to 2017 and the region's flexible space stock grew by a compound rate of 35 percent amid rising demand, global property adviser JLL said in a latest report.
Since 2015, flexible space has been evolving rapidly in China whose net take-up of such space in Grade A buildings surged from 50,000 square meters in 2016 to an estimated 350,000 square meters so far this year in first-tier cities, with its percentage against the total office space take-up rising from 1.8 percent to 9.7 percent.
Net take-up in second-tier cities surged above 10 times from 25,000 square meters in 2016 to an estimated 290,000 square meters so far this year, with its percentage against the total office space take-up rising from 1.6 percent to 8.4 percent, JLL's data showed.
"By 2030, flexible work space could comprise 30 percent of corporate commercial property portfolios worldwide, while this figure is still around 5 percent now," said Jex Ng, head of markets of China and managing director of South China at JLL.
"In China, a number of factors will continue to boost the adoption of internal and external flexible space by companies which are looking to improve space efficiency, meet business growth needs, foster collaboration among employees and boost innovation through new ways of working."
In response to the rising demand for flexible space, landlords and developers have leased space to co-working operators, cooperated with operators, or created their own flexible space offerings to meet corporate tenants' changing needs, the report said.
By 2020, nearly 30 percent of Grade A buildings in China's first and second-tier cities will comprise flexible space, JLL predicted.