COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

64% of MNCs mull over using co-working spaces

Potential cost savings pushed them to rethink their working spaces.

Co-working spaces now play host to a wide variety of end users, including both large companies and start-ups, providing an innovative new platform for these two distinct parties to interact, according to CBRE’s latest report The Evolution of Co-Working: Supporting the Emergence of The New Business Eco-System.

While co-working spaces had originally targeted start-ups and independent service companies, an increasing number of MNCs are tapping into this office solution as they look to build flexibility in their corporate real estate portfolios while leveraging the innovative and entrepreneurial spirit of co-working environments.

CBRE Research’s Asia Pacific 2017 Occupier Survey revealed that 64% of MNCs occupiers plan to use some form of third party office space, including co-working space, by 2020. Cost savings was cited as a driver, followed by leasing flexibility and collaboration.

“By leasing co-working space, MNCs can save a significant amount of capital expenditure for new office fit out and take advantage of flexible lease terms,” said Dane Moodie, Director, Advisory & Transaction Services – Office, CBRE Hong Kong. “Co-working spaces allow MNCs to be more flexible when expanding or contracting their operations, especially as the leasing term in co-working spaces can be much shorter than the traditional 3 year terms offered by portfolio landlords.

Co-working space may not be suitable to all business lines within large organizations however it does offer an innovative option with a potential commercial benefit that is appealing to a lot of key operators," Moodie added.

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