Delivering True Flexibility
Upsize at Will, But Can You Downsize with Ease?
Co-working spaces are now a ubiquitous feature in today’s commercial real estate landscape, offering businesses a range of options from the professional settings of Regus, to the more sophisticated Great Room and the more vibrant vibes of JustCo and WeWork. The ability to choose a space that aligns with a company’s image and needs has never been easier.
The primary reason for companies to use co-working spaces is the flexibility in lease terms. Unlike the conventional 2-to-5-year leases offered by commercial landlords in Singapore, many co-working providers extend leases on a month-to-month basis. This nimbleness in managing real estate commitments is invaluable, affording companies the agility they need in a world where real estate assets and expenses are notably significant.
The Unexplored Potential of Downgrading
Intimate Office Space at 12 Keong Saik
While majority of the co-working providers offers the ability to upgrade their spaces during an existing leasing term, it is worth questioning whether these providers also stand by these businesses through thick and thin, accommodating needs with options to downgrade when it is most needed.
Unfortunately, this is not typically the case. Most providers are contractually within their rights to uphold the existing lease. After all, they shoulder the risk of committing to long-term leases while offering members shorter tenures. While adhering to the contract is a justifiable stance, imagine the positive impact if providers could extend true flexibility as member’s needs evolve.
Contrary to common perception, downgrades can be beneficial. When viewed from a broader lens, this presents a chance to usher in new clients to fill vacated spaces by repurposing available office to meet changing demands, such as subdividing a large office into multiple smaller units. Above all, these provides the potential to build the bond between the service provider and the member, showcasing the provider’s true commitment and value.
Many co-working providers are quick to tout on the emphasis of community, proclaiming it to be the heart of their values. At The Working Capitol, it is precisely in these moments that our community needs to feel the strength of their commitment where we step up and offer the right solutions.
Success Story: A Strategic Move for a leading fintech company from a Full Floor to a Full Shophouse
Reference Image of a full-shophouse unit for members at The Working Capitol
One of our notable success stories comes from Company A*, a leading fintech company, which initially resided in a spacious 3,500 square feet area within The Working Capitol facilities. Mid-lease, they reached out in seeking ways to cut costs, which resulted in a mutually beneficial scenario for both parties.
Taking this opportunity, The Working Capitol swiftly sourced and acquired a three-story shophouse into our portfolio to curate a bespoke office for Company A. This new space, completed with a pantry, washrooms, and personalised façade branding continued to be fully serviced by The Working Capitol, ensuring a seamless transition for our member company.
This strategic move, although seemly a downgrade, significantly enhanced Company A’s workspace experience. They transitioned from a shared space to their own exclusive building, all while maintaining easy access to The Working Capitol’s comprehensive co-working facilities which is just a stone’s throw away at 1 Keong Saik Road.
For The Working Capitol, we were quick to capitalize on the vacated large space, subdividing it into smaller, high-demand office units – all of which quickly found occupants. This agile and collaborative approach not only enriched our portfolio, and enabled us to effectively meet the evolving demands of the market.
A Win-Win Transition, Embracing Change
Company B, a long-standing member of The Working Capitol since 2017, recently transitioned to a more flexible working arrangement. They decided to move from an 8-person private office to hot desking, aligning better with their new operational model.
We facilitated this transition smoothly, finding a new tenant for their previous space within a month and ensuring Company B’s continued presence in our community through our WorkSpot membership.
Conclusion: Leading the Way in True Flexibility
Co-working providers have revolutionised the commercial real estate market by providing companies with great flexibility, powering a new generation of startups and enterprises alike. However, this flexibility can be further extended, namely by providing the ability to downgrade, and while this will always evoke a negative connotation, win-win situations can be found with a little creativity and willingness to collaborate.
At The Working Capitol, we hold a steadfast belief in supporting our members according to their business needs. With the importance for flexibility, it is a crucial pillar that underpins the unique experience we offer to our members. Our commitment to adapting and evolving alongside with our members is more than just a service, it is a testament to our dedication to fostering a thriving community.
As we look to the future, we remain committed to building upon this legacy, continuing to transform Singapore’s historic shophouses into vibrant hubs of business and creativity. Together with our members, we are redefining what it means to be part of a co-working community, providing that with the right support and flexibility, every business and thrive and make its mark in Singapore.
*Both company names are anonymized for confidentiality