The atmosphere at a Hubba office in Bangkok in October 2013. (Bangkok Post file photo)

More and more young Thai entrepreneurs prefer to start new businesses as opposed to working from home and are exploring their options, with coworking space emerging as the latest trend.

Young entrepreneurs are especially influenced by the success stories of global companies such as Microsoft, Google, Amazon, and Apple, all of which had humble beginnings and started in garages.

As Thai houses generally don't have enclosed garages, this option does not provide a viable solution for Thai budding entrepreneurs.

In a new report, CBRE explores options on feasible locations where Thai start-ups can set up their businesses.

At the moment, options for start-ups include working from home and renting serviced or traditional offices. The latest trend is running their businesses in co-working space.

Working from home can be lonely and impractical if you need to hire staff. Moreover, some condominiums do not allow commercial activity and may not let companies register businesses using the buildings as their addresses.

Some may opt to rent shophouses of which landlords agree to short-term leases of one year and the rents per square metre are generally lower than those of office buildings.

Another option is serviced offices such as those operated by Regus and Servcorp which also provide flexibility with no capital costs and commitments as short as one month. However, landlords require a deposit sometimes higher than the monthly rent itself if tenant opts for a short-term contract.

Some start-up entrepreneurs have the confidence to rent traditional office space, which is a significant commitment. The usual length of a lease is three years and a deposit equivalent to a three-month rent is required.

It may be unwise for a new operator to commit to a three-year lease with a legal obligation to pay rent for a full lease term and have the capital costs of fitting, furnishing, and equipping an office, as well as paying a three-month deposit.

Co-working space offers a start-up total flexibility with no upfront capital costs and in many cases offer daily rates.

There are now over 100 locations in Bangkok which provide co-working space facilities. Hubba, the biggest operator, offers services in three locations in the city.

One of the key attractions being marketed by co-working space operators is the potential for collaborating with like-minded young entrepreneurs. However, a major concern is privacy. A start-up entrepreneur may not want other people to see or overhear what their master plans of success include.

Aspiring entrepreneurs would need to consider a number of key factors when deciding where to set up new business ventures.

Obviously, budget is a key consideration, both in terms of monthly outgoing expenses and capital costs of fitting, furnishing, and equipping an office.

Flexibility of commitment periods also matters. It is important to remember that decisions need to be made which prioritise the need for privacy versus collaboration. A startup founder needs to weigh the advantages of a possible collaboration brought about by using co-working space against the need for privacy and confidentiality.

Nithipat Tongpun is Executive Director, Head of Office Services, CBRE Thailand. Thatchanan Siddhijai is Senior Analyst, CBRE Research & Consulting, CBRE Thailand. They can be reached bangkok@cbre.co.th Facebook: CBRE.Thailand Twitter: @CBREThailand LinkedIn: CBRE Thailand and website: www.cbre.co.th