Co-working space operator IWG plans to open at least 11 new branches in Bangkok, Samut Prakan, Chon Buri, Rayong and Phuket, driven by office oversupply and rising demand for flexible spaces.
Country manager Thitiwat Thanapornnithinan said the glut in Bangkok's office market has intensified competition, prompting landlords to upgrade or renovate their properties to attract and retain tenants.
"At both existing and new office towers, co-working spaces serve as a key attraction for tenants, particularly companies expanding their business with a larger number of employees, while seeking to minimise risk amid uncertainties," he said.
With rising demand for flexible spaces, many landlords have transformed their obsolete properties into recurring assets. Some have demolished their shophouses or ageing commercial buildings to construct low-rise towers for standalone co-working spaces, said Mr Thitiwat.
"We saw this trend begin in 2023 when a landlord in the Ratchathewi area demolished older shophouses and constructed a new seven-storey tower, which is now fully occupied by our operations under the Spaces brand," he said.
The second branch under this model opened in Chiang Mai last year. The third, Regus Kata Thani -- a three-storey tower located between Phuket Town and Patong Beach -- is set to open in May this year.
Last month IWG opened a new branch, Spaces Suthi Building, near the Phetchaburi MRT station. The four-storey tower with total space of 2,372 square metres is a standalone branch where IWG replaced a competitor that could not sustain its business.
IWG has 47 branches, with seven branches expected to open this year in Bangkok, two in Chon Buri, and one each in Samut Prakan and Rayong. Mr Thitiwat said the new locations will be in existing office towers, mixed-use developments, community malls, IT centres and hotels.
IWG plans to expand into second-tier areas, including Hat Yai, Khon Kaen, Nakhon Ratchasima, Udon Thani, Surat Thani, Buri Ram, Suphan Buri and Nakhon Pathom.