The Trend of Office Space At an Affordable Cost
COVID-19 has impacted the finances of many office tenants, and now is a time when a global market of cities has emerged with affordable office space options that are designed to attract and retain customers. the talent pool, especially in the technology and creative industries.
Model of affordable office space
In Europe, the periphery of many cities has provided a workspace for startups and innovative companies in the early stages of development, thereby contributing to economic growth and job creation. In addition to the affordable cost factor, this model also brings to the city a lot of exciting activities from startups, social and creative enterprises.
However, this type of development has some differences in Eastern countries. While some peripheries in Western countries are more developed in terms of creative workspaces, the periphery is in Asian cities.
The trend of approaching the affordable workspace model
The co-working model is one of the solutions to use the office at an affordable cost. Accompanying the increase in demand for traditional offices, the number of coworking spaces has also increased. Currently, Vietnam is one of the top 20 countries in the world in terms of the number of co-working service providers, accounting for 1.2% of the global co-working supply. The demand for co-working offices is also driven by the growth in the number of small and medium-sized businesses, plus the healthy start-up environment factor.
Demand for co-working space has also increased during the pandemic when many businesses face increased financial pressure.
According to experts, some startups and small and medium-sized businesses often do not prioritize choosing the traditional office model. Vietnam currently has a large number of businesses of this size, so the market has recorded a large amount of co-working supply. The traditional office market may face several challenges as the lockdown lasts longer, accompanied by an increase in the number of small and medium-sized businesses.”
New supply from old building renovation in office space
Some cities around the world add more affordable workspaces by renovating old buildings, which is considered a sustainable and cost-effective way to develop low-cost workspaces, new businesses, foster strategic relationships, create an innovative community and encourage knowledge sharing.
Analyzing the above office space trend, experts also say that this is a fertile start-up environment. Many co-working spaces in Vietnam provide a supportive environment for business incubation, allowing startups to exchange and share innovative ideas. In addition, it also supports the marketing activities of the business as well as access to capital. Vietnam is benefiting from strong venture capital flows, spurring early investment in a wide range of industries. Many of the investments in the early stages are now catering to traditional office needs, but smaller and more flexible spaces need to be developed as well. From a social perspective, Vietnam is the leading country in terms of the number of cafes per capita, so alternative flexible office models may be the right choice.
Demand for affordable workspaces is growing, and global cities need a way to respond. As business needs change rapidly, especially in dynamic business environments like Vietnam, workspaces that promote innovation and growth will continue to be important. Investors can take advantage of the opportunity by renovating old buildings, which is a sustainable and cost-effective way to replenish office supply.
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