GuocoLand unveils core-flex leasing trend towards hybrid working and the improved utilisation of swing spaces

The Mainboard listed property developer GuocoLand recently revealed its leasing plan for the retail and office parts that comprise Guoco Midtown, its upcoming iconic integrated development in Bugis. It is also revealing details about its office and retail offerings. developer has also revealed information about its office options within the 30 storey Grade-A office tower located in Guoco Midtown.

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Construction is in progress on Guoco Midtown and the two residential developments that are part of the project, the 5-58 unit Midtown Modern and 219-unit Midtown Bay -are already up to be sold. On the 24th of May on the 24th of May, the developer presented the office show gallery on the 8th floor of the office building.

The tower houses offices that have a traditional floorplate layouts that run between the 8th and 29th floors, as well as a landscaped Sky Park on the seventh 7th floor. The floors from the first to the sixth connect to an annexe building dubbed the Network Hub designed for social and business space that is a complement to the office offerings.

The office tower will add more than 700,000 sq feet of office space that is Grade A in the Bugis region. The project is expected to be completed in stages starting in the fourth quarter this year. Each office floor is built with a streamlined, central floorplate, which is about 3000 square feet with a floor-to-ceiling average of 3.3m. Every floor is also going to boast 1.8m-wide floors-to-ceiling glass windows that have perspectives towards Marina Bay and the Kallang Basin area, as well as skyline views of the surrounding CBD.

Core-flex is a method of flex
The developer intends to meet the changing needs for space of corporate tenants and also the growing popularity of workplaces that are hybrid. As per Valerie Wong, GuocoLand’s group general manager of asset management, this includes the creation of a variety of private space and common “swing spaces” and open outside workspaces. The components are all accessible within Guoco Midtown.

“Swing space” is a lease term that refers to different, temporary spaces in an area that permit the tenant to resolve temporary space issues.

For office floors the floorplates are highly efficient and has an modular design that takes into account needs like escape route openings into the core of the building and reduces the number of corridors that are not being used.

According to Wong, a growing amount of tenants from corporate are moving back to a more compact office layout that has a desk for 100 square feet as was typical prior to the introduction of Covid. However, some companies are embarking the “sharing” strategy wherein three or more people share each desk for the duration of the day.

The plan is that there could be various alternative workspaces within the development. The main feature among the options available at Guoco Midtown will be the five-storey Network Hub, which offers an array of temporary workspaces, collaboration facilities as well as recreational opportunities. The lower level is the home of Network Hub will also include cafés and retail shops for informal working environments.

“As we were preparing our project for this year, we had been conscious of the increasing trend towards hybrid working as well as the increasing use of the swing space,” says Wong. “The widespread adoption of co-working over the last few years has forced landlords to look at what traditional spaces and spaces for swings could be more beneficial to the tenant and to find out what services landlords haven’t been able to fill.”

Therefore, GuocoLand plans to manage its own flexible workspaces, rather than employ a co-working company. The solution is a set of office spaces that are available on demand and meeting spaces in the 80,000 square feet Network Hub. It includes amenities like lounges and soundproof office pods fully equipped meeting rooms that are hybrid, as well as conference rooms for 200 persons.

Training rooms, meeting rooms, and conference facilities are expected to take up around half of the space at the Network Hub. the remainder will be flexible workspaces, as well as individual office spaces. These flexible, short-term spaces will be available to lease for 6- to 12-month durations.

“During our discussions with prospective tenants, we discovered that many MNCs come into the area with a growth strategy particularly technology companies that typically double their staff in just two years. This is the reason we’ve redefined the need for more business-oriented and corporate-oriented area that can meet the requirements of large corporate clients,” says Wong.

Wong states that, given the high-end fit-outs and the mix of hybrid solutions provided by Guoco Midtown, “leasing rates at Guoco Midtown are aligned with the current premium Grade-A offices in the CBD and are currently at or above $11 per month”.

She also says that they are currently in the middle of “late-stage discussions” with various corporate tenants, such as pharmaceutical companies, technology firms and companies in the finance sector.

Work-live-play ethos
Guoco Midtown has also been created to improve the concept of work-live-play in order to stimulate the larger Bugis District, and promote a regular flow of people through the area throughout the day and during the course of the week.

“Being located in the Bugis area provides us with the best base terms of foot traffic and I believe that next year, when the number of tourists will begin coming back to Singapore and the Bugis area, it is bound to return to more lively surroundings,” says Wong.

The curating of retail offerings in Guoco Midtown will play an crucial role to complement existing retail options in the Bugis region, she says.

In addition to the office tower, there will be two lifestyle and retail zones. Right to the left of Network Hub will be Midtown Market, a collection of casual living and F&B facilities that will offer outdoor dining in a beautiful garden setting. Also, directly in to the front area of the office building there will be Midtown Square which will be an outdoor dining and social space that doubles as a completely sheltered drop-off area.

The two retail clusters are expected to be completed in the first half of 2023 following the construction of the office tower.
GuocoLand hopes to replicate the impact of its placemaking that it accomplished in the Guoco Tower in Tanjong Pagar where, working in partnership with stakeholders and government agencies it has helped revive Tanjong Pagar’s Tanjong Pagar area after hours of office.

“[At Guoco Midtown,] our main emphasis will be placed on fitness and health because it’s something that is popular with the general public. Additionally, we’ll also organize exhibitions of art and other events related to lifestyle for our tenants as well as future resident,” says Wong.

She also says that the developer is in discussions with various F&B operators, and will reveal its retail offerings soon.