Hong Kong shared office operator TEC bets on Greater Bay Area to boost business even as Covid-19 pandemic hits demand
- A Colliers report paints a bleak picture, with many operators forced to give up space as tenant companies reassess their need for bigger work spaces
- The Executive Centre (TEC), however, is banking on the future business hub to fuel its expansion as it sees the region contributing to its growth
The outlook for the shared office segments in Hong Kong and Guangzhou is gloomy, with demand likely to decrease as the economic slump brought on by the Covid-19 pandemic forces companies to reassess their need for bigger work spaces, according to Colliers International.
The office markets in the two cities – both part of Beijing’s Greater Bay Area initiative – will be challenging this year, said a report by the property consultancy.
The Executive Centre, which provides flexible office space solutions for companies, sees opportunity further afield in the bay area, and is looking to broaden its footprint outside its home city and Guangzhou.
“The challenging business environment in Hong Kong means other operators may also return space and as a result we are likely to see negative operator take-up of circa 150,000 sq ft by year-end,” the report said.
