What is flexible space?
Unlike the traditional office model flexible space is a workplace that offers greater flexibility for users. These flexible spaces typically provide tenants with ready-to occupy furnished office spaces.
Flexible spaces do not require tenants to adhere to standard market practice allowing for lease terms that range from hourly, daily, monthly to yearly. In Jakarta these flexible spaces refer to co-working spaces and serviced offices.
Serviced offices offer a corporate workspace, as well as a variety of business solutions such a virtual offices. Serviced offices typically provide occupants with telephone access, internet, and mail services as part of a monthly package. Some also include access to business equipment like fax machines, copiers, audio-visual equipment, and office furniture. However, there is a growing trend of new serviced offices to adopt concepts and designs commonly associated with co-working, such as communal spaces.
Coworking spaces place a greater focus on fostering a sense of community between tenants. While they provide similar amenities to serviced offices, they also prioritize networking, often hosting events for their tenants. As a result, with frequent interactions taking place between large conglomerates, small startups and freelancers, coworking spaces often have a livelier, more dynamic environment, encouraging innovation.
While the Coworking sector is still in its early stages in Indonesia, there is growing interest from both occupiers and developers. The market is currently dominated by small, local groups occupying space in Grade B and C offices in core areas of the city or standalone shop house type buildings in decentralized locations. However, international co-working firms such as WeWork and Justco have recently entered the market, occupying large office buildings in central locations.
E-commerce firms, fintech companies and co-working space providers have been one of the most active occupiers of coworking space in the commercial real estate market.
Why Flexible space?
Typical users of serviced office are small businesses that need to provide employees with workstations, office equipment and facilities. Whereas coworking spaces are more popular among startups and freelancers or self-employed professionals looking for a more inspiring workplace.
Though more recently, the larger coworking operators such as WeWork and JustCo are looking to attract more enterprise clients. Increasingly, there is a growing trend of more enterprises considering flexible space as a workplace option, lured by the many advantages that it offers.
Short term contracts allow organizations to adjust headcount and accommodate changes to their underlying business strategy, without being constrained by longer-term leasing commitments. Some occupiers can move towards a ‘core/flex’ strategy in which they take on a traditional office space lease for their core staff and lease workstations from a flexible space operator, ideally in close proximity to their core space, to accommodate headcount changes.
Furthermore, the promises of a vibrant community may appeal to a younger demographic, allowing companies to attract a younger workforce.