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September 21, 2020

Co-working spaces report 

Knight Frank releases the Co-Working Spaces Report recently which analyses the current co-working landscape, landlords’ reaction towards the slowdown of the co-working industry, and market opportunities for landlords in the post-pandemic era.

Highlights:

  • Over the past decade, a massive rise in the number of co-working space operators in Hong Kong. International operators and players from Mainland China have expanded rapidly in the market.
  • However, the proliferation of co-working operators quickly slowed down in recent years, resulting in a rising number of operators reported to be in financial trouble because of over expansion.
  • The debacle in the co-working space industry has left some landlords with a significant amount of surrendered space, typically in large floor plates, adding to the pressure from a leasing market that was already slowing down.
  • For landlords, having their own co-working space brand and self-operating the space enables them to serve their tenants in a more bespoke way and provide a wider range of services to their tenants.
  • The ability of landlords to operate their own co-working brand will help them to not only differentiate themselves in this competitive market.
  • The COVID-19 pandemic has prompted some companies to quit traditional office space and shift to co-working spaces as a substitute, boosting demand for co-working space.
  • Many smaller companies and start-ups do not want to commit to long-term leases, especially amid the market downturn.



(Source: wework)



 





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