Jaelle Ang, Co-Founder and CEO of The Great Room
The COVID-19 pandemic and the vulnerability in the market have had a profound effect on the co-working space industry in Asia. The role and definition of co-working space have now changed.
“The places where we used to sit behind a computer at our desks most of the time have become a modern agora where people gather to learn from and collaborate with one another,” says Jaelle Ang, Co-Founder and CEO of The Great Room, a Singapore-based hospitality-led coworking space.
How does the industry cope with the fast-changing environments? How has the industry grown post-pandemic?
In this interview, Ang answers these questions and discusses the trends and changes in the co-working space sector.
Edited excerpts:
How has the demand for co-working spaces changed since the start of the pandemic? Have you seen an increase or decrease in occupancy levels? Has the demand gone up after the dangers of COVID-19 are gone?
As a whole, the demand for flexible workspaces, and by extension co-working spaces, has increased. The geopolitical uncertainty that the world faces today had a ripple effect on the many considerations of businesses, such as geography, headcount, and growth. This state of flux requires the support of real estate partners in terms of flexibility to accommodate these changes.
Pre-pandemic, the flexible workspace was projected to grow from 5 per cent to 30 per cent by 2030, and we’ve seen this trend pick up more than ever. We’ve seen an immense growth of demand from the enterprise segment of customers; businesses that are sophisticated and drive high margins.
Also Read: Singapore gets an NFT-gated Web3 co-working space Metacamp
One such example is our newest location, The Great Room, South Bridge. Slated to open on April 20, it currently has a pre-opening occupancy rate of 80 per cent, the highest opening occupancy within our portfolio.
What changes have you made to your co-working space design to adapt to the new normal? Have you implemented any health and safety measures for your members?
We’ve designed a space where people can come together to collaborate and learn. The role of the office has changed. The places where we used to sit behind a computer at our desks most of the time have become a modern agora where people gather to learn from and collaborate with one another.
The ultimate role of the office is to help companies win the ‘war for talent’, and the edge for any company is the ability for their talent to learn quickly. Instead of isolating individuals to the confines of their desks, we’ve created a culture container, a learning place that enables and encourages meaningful interactions.
In terms of health and safety, The Great Room puts an emphasis on cleanliness and hygiene within its spaces, with strict cleaning protocols such as increased cleaning frequency at high touch points throughout our coworking spaces, as well as a variety of wellness and health programmes for members who have become more conscious as a result of the global pandemic.
How is the current economic climate affecting the industry?
We are cautiously optimistic. On one hand, the outlook for co-working spaces is positive as a result of business uncertainty. However, we are well aware of macro trends such as high rates of inflation and increasingly volatile markets.
Industries that used to be seen as very safe such as large banks and tech companies have found themselves in rather vulnerable situations. This has had profound effects on our industry. There may be new opportunities presented, but there could also be many shifts and changes that we will have to accommodate as well.
Have you noticed any specific trends in the co-working space, particularly in Singapore?
Singapore is a market that is familiar with co-working. If companies want flexible workspaces, they will have varying needs and price points, and we expect to see the market become increasingly segmented to the point of fragmentation. This is when we can also expect to see a consolidation of the existing players.
Since the pandemic restrictions were put in place in 2020, The Great Room has seen a significant shift in its audience segment over the last three years. Before the pandemic, occupancy rates were split between SMEs and MNCs & enterprises at 75 per cent and 25 per cent, respectively.
Currently, in the post-pandemic era, SMEs now make up 35 per cent of the members while MNCs & enterprises make up a majority of the members at 65 per cent post-COVID-19.
With many companies now adopting a hybrid work strategy, how do you see this impacting the co-working industry in the future?
The co-working industry needs to rethink its role. Beyond providing just seats in front of computers, they need to provide activity-based working and meeting spaces, as well as spaces for training, collaboration and learning. We need to help our clients win the war for talent, whether it is through initiatives such as wellness programmes, helping talents learn beyond their immediate fields, or building their social capital and simply connecting with people.
We’ve seen an accelerated adoption of flexible work arrangements, as well as a demand for versatile workspaces during the pandemic. With our sixth and newest location, we’ve doubled down on offering dynamic spaces, efficient services and community-building events to offer a variety of options that meet the varied and ever-changing needs of our members.
In what ways has your approach to marketing and promoting your co-working space changed since the pandemic started?
In our early days, our efforts were geared towards brand building and telling the story of The Great Room. Now that we’ve expanded to ten locations, we are focusing on telling the stories of our members, communities, and the location of our workspaces.
How is the current economic crisis impacting the co-working space in SEA?
Asia has been lucky coming out of the pandemic. Rates of consumption, services, and the return of the workforce to the office have been high. However, people’s belts will continue to tighten, and they will become wiser about spending.
Co-working spaces are ultimately a business expense, and people will have expectations for them to provide more bang for their buck, whether it is in the form of services, hospitality, or learning.
Also Read: From co-working to co-living, these 8 brands in Southeast Asia have got you covered
The current economic crisis has resulted in an increased demand for flexible workspaces with the adoption of remote work arrangements. The high degree of flexibility and cost-prohibitive nature of co-working spaces can benefit companies weathering times of economic crises as they pose less of a liability.
For The Great Room, our multi-faceted range of workspace solutions is our greatest asset to our customers, whether it is a company looking to downsize their office space, or a small business owner looking for an arrangement suited to their needs.
—
Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.
The post The co-working industry needs to rethink its role: The Great Room CEO Jaelle Ang appeared first on e27.