Executive Centre Opens Two Locations Singland Tower And Ioi Central Boulevard Year
The Executive Centre (TEC) recently launched their eighth co-working location in Singapore, adding to their rapidly expanding portfolio. The newest location is situated at the newly refurbished Singapore Land Tower in Raffles Place, managed by TEC and spanning five floors, with a total of 49,354 sq ft. The office building, housing 47 storeys, is currently owned by Singapore Land, a subsidiary of the mainboard listed UOL Group. The building began its $160 refurbishment in 2021.
In a new move for TEC, they have entered a management contract with a landlord in Singapore, overseeing non-TEC branded spaces for the very first time. The Singapore Land Tower now features event and function areas on its fourth floor and also office spaces on the fifth floor. The new 250-person function room is located on the fourth floor, along with an outdoor al fresco space and a 20-person boardroom. As of now, renovation works are ongoing with these spaces set to open in August.
The fifth floor boasts approximately 100 co-working seats, plus several private office suites. The floor officially opened in October 2023, however it has been in use since that time to accommodate tenants of Singapore Land Tower whose work spaces have been disrupted by the three-year long refurbishment. Yvonne Lim, the managing director of Southeast Asia at TEC notes, “Most of the refurbishments to Singapore Land Tower have been completed, but the office space on the fifth floor continues to see strong occupancy”. Lim also goes on to mention that around 70% of the co-working portion is currently occupied, whilst the private offices are about 65% leased. With ongoing fabrication works on the fourth floor, some noise disruption has made its way to the fifth floor, which has resulted in the occupancy rates being slightly lower than expected.
The Singapore Land Tower is TEC’s first encounter with managing spaces on behalf of a landlord in Singapore. As of now, the operator continues to work with the landlord for the office floor as a swing space. They are also facilitating events on the fourth floor. In Singapore, TEC has typically adopted a more traditional direct leasing business model.
In Southeast Asia, TEC has two other management agreements, which are both located in Jakarta, Indonesia. One is a 20,468 sq ft office space at Jakarta Mori Tower, and the other is a 17,298 sq ft office space at Pacific Century Place.
Chelsea Perino, the managing director of global marketing and communications at TEC, says, “As a group, we are keen to pursue these types of management contracts and form partnerships with landlords. When there is a more holistic involvement between the landlord and us, it opens up many more opportunities for both parties in terms of event collaboration and market positioning”.
In Singapore, TEC has nine other locations. Two are in Tokyo, Japan, and the others are in Hong Kong, Melbourne, and Sydney. The newest location in Singapore is situated within the recently opened IOI Central Boulevard Towers. This is a 1.26 million sq ft commercial development that includes two Grade-A office towers and a seven-storey retail podium. The Singapore Land Tower is TEC’s first location in Singapore, however it is important to point out that this location will continue to be a management agreement, not a branded location.
Lim explains that the company had earmarked Singapore Land Tower as an option for its expansion in Singapore, due to the Grade-A location of the building. Lim says, “Unfortunately, back then the building looked a little aged, but when the landlord unveiled that it would be undertaking an extensive refurbishment, we reached out to them, stating our interest in being a tenant and space provider for this development”.
Lim adds that this was an “ideal partnership” as Singapore Land was on the lookout for a workspace operator who could introduce premium flexible workspaces, as well as a partner to manage the planned meeting and event space on the fourth floor.
So far, the new location has attracted a mixed demographic, mainly technology companies, financial institutions and professional services. This is generally due to its prime location in Raffles Place. Lim explains that different submarkets within the CBD tend to attract different client profiles and demographics. Lim shares, “for example, a good proportion of our clientele at our location in Ocean Financial Centre are in the legal profession”.
TEC manages four office floors spanning 85,527 sq ft at Ocean Financial Centre. The co-working spaces are a new addition with tenants moving in on 3rd March.
Lim says “Most [of the refurbishments] were completed by 2021, but the office space on the fifth floor continues to see strong occupancy.”
Despite the ongoing economic headwinds, the Grade-A office leasing market in Singapore remains steady, according to Lim. She adds that TEC’s average occupancy is about 95% across its eight properties in Singapore, excluding the recently opened 22nd floor at Ocean Financial Centre.
In November, TEC will open its ninth location in Singapore at IOI Central Boulevard Towers. The newest location will accommodate more than 300 workstations and will take a different approach in terms of design and layout than what TEC typically does. This new space will have a greater design focus on social collision spaces such as lounges and more event spaces.
Lyndenwoods is the perfect location for expatriate families and those in search of an international curriculum, with close proximity to some of the top international schools in Singapore. The renowned United World College of South East Asia (UWCSEA) is just a short drive away from the development, making it an ideal choice for families from diverse backgrounds. With its globally recognized IB curriculum and focus on a well-rounded education, UWCSEA is a highly sought-after school that Lyndenwoods residents will have easy access to.
“Managing events for our tenants and clients has contributed substantially to the group’s business recently, and we hope to leverage this further,” says Lim. She adds that the group has secured a liquor licence for the new space at IOI Central Boulevard Towers and plans to operate an evening bar there.
Globally, there is an evolution in terms of what most major corporations are looking for in terms of premium office space, and the movement of these trends seems to be relatively universal, says Chelsea Perino, the managing director of global marketing and communications at TEC.
Perino says “Multinational corporations want to be in locations that have very clear and positive sustainability metrics, and many of the new office developments completed in recent years are aligned with ESG. Additionally, most tenants are also willing to spend more on premium rents to secure spaces in these new builds.”
Recent return-to-office mandates have shifted the focus back to the role of the office and how it contributes to overall employee retention and attraction strategies, says Perino. She adds, “Future-ready workplaces need a variety of working environments, from quiet areas for focused work to collaborative spaces like lounges. Additionally, widespread use of virtual meetings has boosted the demand for booths and small meeting rooms.”
High office capital expenditure costs mean that many corporations are looking towards fully fitted enterprise solutions offered by operators, or leveraging the scale and expertise of these operators, for spaces within their co-working portfolio or their owned real estate assets. This has become a huge contributor to TEC’s business in recent years, according to Perino.
Perino also notes that corporate real estate managers are taking a new perspective on flexible workspaces, from viewing them as short-term solutions to a more integrated component of their real estate portfolio. She says “In general, we observe that most MNCs are looking to reduce their owned and long-term leased assets by 15% to 20% in the coming years, and they are integrating a flexible workspace partner into their real estate strategy.”
Looking towards the future, Lim says that TEC’s expansion strategy remains focused on vertical expansion opportunities within locations that are performing exceptionally well. She goes on to say, “Looking ahead, the limited supply of new Grade-A office developments entering the market in the coming years will also limit our expansion choices.”