Many Co-working spaces in Bangkok are currently housed in stand-alone buildings or non-commercial properties, but a growing number of co-working brands have opened branches in office buildings, reports local media. A number of regional and international co-working space operators are now looking to do the same in Bangkok.
“Several regional and global co-working space brands are looking for opportunities to set up their big operations in Bangkok. They are looking to secure 1,000-3,000 sq. metres of space in grade-A office buildings within walking distance to BTS or MRT stations. Most co-working space providers prefer partnerships with office building owners, proposing a profit-sharing structure where the provider pay lower rents to the building owner and provide direct or indirect payments to the building owner, depending on co-working space provider’s profitability,” says Yupa Sathienpabayut, JLL Head of Office Leasing, to the Bangkok Post.
A few co-working space providers initially focused on serviced offices and meeting facilities but soon switched to co-working spaces as demand from small business, freelancers, and large corporations grew. Examples of this trend are Regus’ locations in 10 office buildings around Bangkok, Antares Office at RSU Tower, and CEO Suite at Athenee Tower. And while some building owners are okay with these agreements, others are not as keen on the profit sharing model.
“Such a profit-sharing model is a new concept that is not popular among office building owners in Bangkok, who still prefer a more secure income stream from rentals. This trend is likely to continue in a short to medium term, particularly in the currently undersupplied office market,” says Yupa
Moving into prime office buildings is not always possible for co-working space providers since most of these buildings are already fully occupied or have limited space available to rent. This means they are forced to look at alternative locations.
“To tackle the office supply constraint, some operators have considered existing secondary Grade buildings in sought-after locations near mass transit stations as alternative options, while others are looking at office development projects that are near completion,” says Yupa.
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