Special interview
Written by: Lin Leqian
2020-09-10 07:15
Last update date: 2020-09-10 07:15
The pandemic of the century has dealt a blow to the prospects of global business. In the past, "Central people" in suits were nowhere to be seen. Many wage earners worked from home under the arrangement of the company. In addition, the rising social and political risks in Hong Kong have shaken investor confidence. The vacancy rate has repeatedly hit record highs, putting the prospects of local commercial properties to the test.
The co-working space, which has sprung up in the early years, is shrinking in scale. However, some operators have gone the opposite way and continued to expand against the market. The number of members has soared by 40% since the beginning of the year. After the epidemic is over, the office market will usher in a major reshuffle, when the demand for shared offices will increase, and will even settle in community shopping malls.
Many co-working spaces expanded rapidly in Hong Kong in the early years. However, as the leading WeWork’s US listing plan "strikes", more operators have abandoned leases or made big price cuts. There have been many doubts that the industry has become "shared". foam".
At the time of the outbreak, it is more difficult to operate a shared workspace. One of the operators and the co-founder of theDesk with 7 locations in Hong Kong, Xu Biao (Thomas), has a different idea and analyzes the "washing" of the office market. Brand Tide".
Jones Lang LaSalle issued a report in the middle of the year, pointing out that the epidemic will cause changes in office properties. Companies may readjust their required working space when the traditional office lease expires or even ends early.
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Can physical offices be completely replaced?
Working from home has become the norm under the epidemic. Twitter and local start-up 9GAG have even allowed employees to choose to work from home forever, making people think about whether companies still need physical offices in the future.
According to a report issued by Jones Lang LaSalle in the middle of the year, it is pointed out that the epidemic will cause changes in office properties. Enterprises may readjust the required working space when the traditional office lease expires or even ends early. Some tenants may consider renting by a third party. The operator’s shared office, or arrange for some employees to continue working remotely.
However, Roddy Allan, Research Director of Jones Lang LaSalle Asia Pacific, analyzed that there will always be demand for physical offices in Hong Kong. Although office rents in Hong Kong are high, physical offices have always been the core of maintaining corporate culture. In addition, Hong Kong people have a small living area, which is disadvantageous. For working from home, the daily commuting time to and from work is shorter than that in other big cities, and there are relatively few incentives for companies to provide remote work solutions.
He believes that flexible and shared working space is one of tenants' short- and medium-term expansion plans. The industry is expected to benefit in the short-term, but the industry must choose strong suppliers due to industry consolidation.
During the first half of the epidemic, the number of members in theDesk's seven locations increased by 40%, and there was a 10% increase in July alone.
(Photo by Huang Shuhui)
Industry consolidation for half a year, the number of members increased by 40%
"At present, most employees need to work from home. Some companies no longer require all employees to work in the same office. People who cannot concentrate on working at home may choose to find another location for office work, resulting in Romote Office (remote office). ).” TheDesk co-founder Xu Biao (Thomas) pointed out that the total number of members of the company’s seven locations, including Sheung Wan, Causeway Bay and Admiralty, has increased by 40% during the first half of the epidemic, and there were 10 in July alone. % Increase, even if the epidemic is set back, there is still "money every month", but the business of renting event venues is halved.
He explained that it is estimated that the new customers are related to the closure of their peers. Some operators developed too rapidly in the early years, resulting in continuous losses. They had no choice but to abandon the lease of the premises and spread out in Hong Kong. At present, many companies plan to reduce the size of their offices and believe that they will rent their original offices. , Will be more willing to rent co-working space because of its advantages in rent and flexibility. In addition, the unemployment rate in Hong Kong is currently high, and more freelancers and entrepreneurs may appear, increasing the demand for potential space.
Thomas pointed out that the business model of coworking spaces must be changed. It can no longer operate as a "rent collector" and needs to provide additional services, such as establishing a business community to allow different companies to share human resources, technology and business opportunities.
(Photo by Huang Shuhui)
Shared workspaces can no longer be "rent collectors"
The office market is facing a big test, and shared workspaces are not immune to reason.
Thomas pointed out that the area of co-working space in Hong Kong is about more than 2 million square feet, which only accounts for about 1% of the total office space in Hong Kong. It is believed that some companies will abandon the rent of traditional offices when considering downsizing, and the market still has certain potential.
"It has to sign a three-year contract and spend a sum of money to renovate it. I can't do it." The company also took the opportunity to expand against the market. In August this year, it opened a new base in the Kerry Hotel in Kowloon.
However, he pointed out that the business model of shared workspaces must be changed and additional services need to be provided. For example, through the establishment of business communities, different companies can share human resources, technology and business opportunities, and can no longer operate as "rent collectors".
While remote work drives the demand for shared workspace in all districts, future locations are no longer limited to traditional commercial districts, and community shopping malls in Yuen Long and Tseung Kwan O will be considered in the future.
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