More than eight in 10 firms downsize for cost savings

Around 31% of respondents expressed a negative outlook for the next 12 months.

More than eight in 10 (81%) businesses are downsizing to cut costs, according to a Colliers report.

The survey reveals a cautious sentiment, with 31% of respondents expressing a negative outlook for the next 12 months.

Despite this shift, the majority (41%) maintain a neutral stance, reflecting a stable yet cautious market.

Conversely, expansion is primarily driven by business growth in Hong Kong (68%) and the need for additional current space (51%).

It is led by the Technology, Media and Telecoms and Insurance sectors, with 35% and 36% planning growth respectively. Banking and Financial Services remain balanced, whilst Shipping and Logistics and Sourcing and Trading show strong intent to downsize.

Moreover, rent (92%) is the most critical factor in office space selection. Building quality (72%) and floor plate size (37%) also rank highly.

Further, approximately 64% of occupiers plan to stay in their current buildings, with 44% renewing without changing office size.