Flexible office spaces expand in Hong Kong: JLL
Companies should rethink their office design as hybrid work gains traction.
Flexible office spaces are gaining traction in Hong Kong, continuing their expansion across core business locations and being a major driver of the office leasing market in September, according to the latest report by JLL.
"In the face of global economic uncertainties and hybrid work becoming more popular, some tenants are turning to spaces that offer more flexibility. This has supported the expansion of flexible offices in the city,” said Alex Barnes, managing director at JLL in Hong Kong.
With the shift from traditional offices to hybrid work, companies need to rethink the design of their offices to accommodate the changing needs, Barnes noted.
“The role of the office is no longer simply a place to work, but a communal space enabling collaboration, fostering innovation and supporting high-performing teams,” he added.
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Overall, the Grade A office market recorded net absorption of 157,000 sq ft in September, according to JLL.
Notable transactions include IWG leasing 25,600 sqft (GFA) at the LKF Tower in Central, and The Great Room leasing a mid-zone floor of 21,300 sqft LFA at the Cheung Kong Center. Household appliances manufacturer SEB Asia committed to a mid-zone floor of 37,500 sqft (GFA) in the newly-completed AIRSIDE in Kai Tak.
New completions over the month–including Boton Technology Innovation Centre and AIRSIDE–pushed up the vacancy rate to 10.5% by end-September.
In core business districts, the vacancy rate remained stable, whilst Central's vacancy rate improved from 8.4% to 8.3%, said JLL.