Concrete Analysis

What is the future of co-working spaces in Hong Kong?

The sector witnessed high levels of growth in Hong Kong between 2016 and 2018, but this has decreased over the past 24 months

There are opportunities for both operators and tenants to take advantage of the current business environment

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Strong demand for flex space is anticipated, particularly from large MNCs, which view it as an attractive option for entering new markets, reducing capital expenditure and testing out alternative occupancy models. Photo: Reuters

Dane Moodie is senior director for advisory & transaction services of office at CBRE Hong Kong.

Published: 11:59am, 16 Mar 2021Updated: 11:59am, 16 Mar 2021

The co-working sector, also known as the flexible space sector, has enjoyed tremendous growth in recent years, supported by the start-up boom, demand for greater flexibility among both employees and companies, and its appeal as a cost-effective alternative to traditional offices.

However, with Hong Kong entering its longest recession since 2009, and companies widely adopting work from home policies and social distancing measures, what does the future hold for this sector?

Co-working space is defined as a shared work environment providing a wide range of workspaces to occupiers. Tenants in co-working spaces pay a fixed operating cost. They, however, do not take out long leases or make a large capital outlay for fit-outs. By simply subscribing to a membership, they receive the right to use the co-working space and access shared facilities. Also, co-working operators have increased allocations for customised space exclusive to corporate members, whose subscription could be hundreds of seats in Asia-Pacific.