“Not all businesses are suitable for co-working spaces. It will appeal only to millennials. My business needs a proper office to meet customers”. These are some of the reasons people use to avoid the growing trend of co-working spaces.
However statistics show that co-working spaces are here to stay. For a new business, they give good branding and people feel more comfortable in them.
In 2018, flexible workspace supply in Kuala Lumpur grew by 36%, making it the fastest growing key city in the APAC region, outpacing fast-growing markets in Gurugram, Chennai (both are Indian cities) Brisbane, Hong Kong, Sydney and Singapore.
Last year in Kuala Lumpur, the supply of hybrid office space increased by 31%, while pure co-working space and serviced offices saw 10% and 7% growth respectively. An average desk rate of RM886 across the city indicates the strength of the market.
Some hot areas for business addresses include Damansara Heights, Bangsar South, Mont Kiara, Petaling Jaya and Subang Jaya.
Growing that fast can only mean that new businesses and startups are embracing it like a natural progression instead of setting up an office at home. It also means starting from a much lower base compared to other cities.
There is now a higher acceptance for co-working spaces. In fact, the cost per desk is actually lower than indicated as many are not located in the most prime areas.
Currently there are many new players in the market offering better introductory rates. SMEs and startups should take note and be aware of these newer and cheaper options.
Instead of worrying about expenses on security, renovation, office furnishings, receptionist and others, co-working spaces are a better choice to start.
This article first appeared in kopiandproperty.com
Charles Tan blogs at property investment site kopiandproperty. He dislikes property speculators and disagrees that renting is better than buying. He thinks it’s either property or poverty. He is presently the CEO of an auction house auctioning assets beyond just properties.