Demand for traditional offices is falling, so leading developers in Hong Kong are preparing for expansion of the coworking industry.
“The serviced offices sector continues to evolve as landlords are now entering the market in direct competition with established players,” said Keith Hemshall, Cushman & Wakefield’s executive director and head of office services in Hong Kong.
According to Knight Frank, operators in Hong Kong fell from 15 in mid-2018 to 13 today, while the number of locations itself has also fallen from 2018.
WeWork is one of the contributors to this decrease of space after it surrendered locations in the Harbour City Complex in Tsim Sha Tsui, Hysan Place in Causeway Bay and Hopewell Centre in Wan Chai.
Now, major companies are rethinking the way they use their space and the best ways to cut down on costs. This has led many to adopt a “core-and-flex” strategy that would allow core teams to work in offices in Hong Kong’s main district, while others work in flexible workspaces.
Eaton Club opened its four coworking spaces this year to accommodate growing demand from companies who are looking to downsize their real estate footprint or opt for a more flexible work model.
Landlords are also looking to delve into the coworking industry by opening their own spaces within their buildings in order to meet this demand.