China’s coworking market may start consolidating
An industry report revealed that China’s coworking market will see more mergers and acquisitions as operators receive more resources and capital.
A China Real Estate Chamber of Commerce and Haozu report found that the top 10 companies occupy 37% of coworking space in China and the top 100 companies occupy 75%, which shows a trend of mark centralization.
Last year, 40 coworking operators left the market, with 3% of them being acquired. For example, China’s major coworking firm Ucommune acquired six brands.
“Consolidation is a natural progress for fast-growing businesses such as co-working spaces” said Mi Yang, head of research at consultancy firm JLL North China. “Operators with market advantages will seek every opportunity to expand their market share.”
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The report also revealed that the area of coworking spaces in first-tier cities grew from 2.5 million square meters in 2017, to 3.94 million square meters as of last October.
Jiang Hao, a Shanghai-based partner of consultancy firm Roland Berger, said that fixed desks are unnecessary in a time where employees have the ability to work from home or while traveling.
“We just need to gather from time to time to have a meeting. For most of time, we do our work individually,” Hao said.
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