WeWork is continuing its expansion in Hong Kong as the company announced it would be taking over six floors (about 150,000 square feet) at Wharf’s Harbour City Complex in Tsim Sha Tsui.
According to JLL, Tsim Sha Tsui grade A office vacancy stood at 2.3% as of the end of February and benefits from its close proximity to Hong Kong’s high speed rail terminus.
This news comes on the heels of the company announcing it had doubled its losses in 2018, with some lenders second-guessing about issuing loans backed by buildings affiliated with WeWork.
WeWork also has two company branded coworking spaces in this year’s pipeline in addition to two of its “Powered by We” projects.
The new TST space joins eight other locations in the area that the company operates since its entrance into the city in 2017. While WeWork seems to be working at full speed, many other operators have hit the brakes on expansion in the area due to market dynamics.
“Operators will need to do more than just take up space and deliver flexible workspace to get landlords to the table for partnership deals — they will need to bring a greater offering, particularly in respect of hospitality and amenities to genuinely deliver value to get these types of deals,” said Jonathan Wright, director of flexible workspace services for Asia at Colliers International.