Coworking Space: Office Leasing Trend in 2020

Renting coworking spaces is considered to be an economical and optimal measure. The year 2019 saw a surging demand for this office leasing type. It was projected to continually soar in the future. 

However, the coronavirus pandemic has affected many businesses in 2020.  Does the trend continue to go upward? Read this article for more information.

1. Coworking space – a recently emerging trend in the office sector

Coworking spaces, or shared offices, are an effective substitution for traditional offices. This service provides a fully furnished working space for various business scales along with amenities (reception, coffee, tea, furniture, meeting rooms …). 

Coworking space is a favorite office of businesses

Though the coworking space is popular all around the world, it’s still a new kid on the block in Vietnam. First appearing in 2007, this saving and convenient office service is the choice of startups, contemporary teams working on projects, and freelancers.
Till 2019, the number of service providers has increased up to a 3-digit number, with up to 80% of which in Ho Chi Minh City and Hanoi invested by foreign-based companies.

2. Coworking space leasing trend in 2020

2020 was a hard time for many companies, but it also was the time for coworking space to show its advantages.

2.1. Demand is not booming as expected

Like any other country, Vietnam's economy stagnated due to the virus impacts. During lockdown periods, companies bore losses. Remote working was encouraged, cutting down the demand for offices for rent and new business premises.

Coworking space proves its effectiveness during lockdown periods.

However, coworking spaces were still in great demand, mostly by tech-related companies.

Coworking spaces offer high connectivity for their renters, creating a “coworking” environment for companies to cooperate, share, think of ideas and help each other during this hard time. And with its affordable rent, this would be the best solution for startups, small and medium enterprises.

Though the demand was not “booming” as expected, coworking spaces were still “hot” during social distancing periods and more preferable than traditional offices.

2.2. Increasing number of coworking space providers

The coworking space business has increased in previous years. Particularly, from early 2017 till the first quarter of 2018, the number of coworking space providers surged from 17 to around 40 – which is a roughly 2.5 times increase.

An increasing number of coworking space providers

The number of coworking spaces in Hanoi was 19 and 15 in HCMC then. But 2019 saw an increasing number in both coworking spaces.

2.3 Flexible office package

Knowing the difficulties many companies face during lockdown periods, coworking space providers understood and gave out support packages such as dedicated desks and hot desks. Also, they allowed renters to rent working spaces by the hour, day, or month with a flexible rent term.

Dedicated desks offer an attractive price: cheaper from VND3.5 million to VND3.9 million ($150-170) for a person a month compared to the market price and cheaper from VND20 to VND25 million compared to traditional offices.

Attractive policies and rental packages

Besides, there also were rental packages by the hour or by day. Renters can enjoy a variety of office amenities and facilities – such as reception room, meeting room, fax machine, recreational areas, and more – at a fair price.

The above packages have emerged since 2019, and other rental packages are expected to be available in the coming times to attract more tenants and create a competitive advantage.

For your reference:
>>> Daily Hot Desks for lease 
>>> Weekly hot desk for lease
>>> Monthly hot desk for lease