Co-working operators buoy office leasing demand in Q1

They committed to 143,300 sq ft of new space in Hong Kong Island in Q1.

Co-working operators are increasingly eating up share in Hong Kong’s office market in Q1, according to CBRE Hong Kong market view.

Co-working operators committed to 143,3000 sq ft of new space in Hong Kong Island in Q1 which represents almost 60% of total net absorption in the area. Notable transactions include the lease of US coworking operator of 48,600 sq ft unit in Cityplaza Three for its first venture into Hong Kong East.

Regus also committed to over 25,000 in AXA Southside in Wong Chuk Hang whilst The Executive Centres napped 29,200 sq ft in Three Garden Road - Champion Tower.

Co-working spaces also made their presence known in Kowloon and New Territories with PRC brand ATLAS establishing its first centre in Hong Kong at a 35,400 sq ft unit in The Gateway in Tsim Sha Tsui. Another Mainland-based operator Naked Hub similarly leased two top floors worth 33,500 sq ft in Two Harbour Square for its first location in Kowloon.

Also read: WeWork eyes naked Hub acquisition to capture Greater China market

Regus, on the other hand, extended its footprint to Wai Yip Street, a revitalised office building in Kowloon East.

“The government has again forecasted solid economic growth for 2018 which is expected to support office leasing demand,” CBRE noted.