HONG KONG SERVICED OFFICES

Hong Kong serviced offices are also known as managed offices or flexible offices. It is a type of commercial real estate solution that provides businesses with fully equipped office spaces with flexible lease terms, along with various support services as alternative options to conventional/ traditional offices.

Short-term office rental solution i.e. flexible lease term.

• Serviced offices offer short-term leases, allowing you to adjust your space requirements as your business evolves.

Save the hassle to deal with office operations, while you can focus on the core business.

• Serviced offices come fully equipped, saving you time and resources on setting up and managing office infrastructure.

No upfront fit-out cost.

• With no upfront investment required for furniture, utilities, or maintenance, serviced offices offer a cost-effective solution compared to traditional office spaces.

“Pocket space” of a conventional office in a Grade A commercial building is extremely rare.

• Serviced offices provide an alternative option for smaller businesses. They can benefit from a prestigious business address and access to high-quality facilities, enhancing your companies’ image.

Below are some examples for Serviced Offices in Hong Kong:

Sheung Wan Serviced Offices

• Infinitus Plaza

• Wing On Centre

• The Chelsea

• Grand Millennium Plaza

• BOC Group Life Assurance Tower

• Sun House

Central Serviced Offices

• China Building

• One Chinachem Central

• Cheung Kong Center

• One IFC

• Hong Kong Club Building

• Nexxus Building

• Prosperity Tower

• Two Chinachem Central

• Dina House

• New World Tower

• AIA Central

• Champion Tower

• 28 Stanley Street

• The Center (BELA)

Admiralty Serviced Offices

• 8 QRE

• Admiralty Centre Tower 1 & 2

• Two Pacific Place

Wan Chai Serviced Offices

• Central Plaza

• 200 Hennessy Road

• The Phoenix

Causeway Bay Serviced Offices

• Lee Garden One

• Lee Garden Two

• Lee Garden Three

Fortress Hill/ North Point Serviced Offices

• AIA Tower

Quarry Bay Serviced Offices

• One Island East

• PCCW Tower

Wong Chuk Hang Serviced Offices

• AXA Southside

Kowloon Serviced Offices

• ICC

• Mira Place

• Silvercord Tower

• The Gateway

BELA Offices

• Bela Office is a local brand in Hong Kong. It has been aggressively expanding its business presence in Hong Kong with a total no. of 6 business centres including their newest location in Kowloon East, while others are located in Sheung Wan, Central and Tsim Sha Tsui. Although it is comparatively new in the market, the people behind have extensive experiences in operating a serviced office brand. Bela Offices aims to offer a truly premium experience at affordable prices.

Compass Offices

• Compass Offices is also a local brand from Hong Kong established by Andrew Chung back in 2009 with a total of 11 business centres in Hong Kong scattered around different locations such as Sheung Wan, Central, Admiralty, Causeway Bay, Fortress Hill and Tsim Sha Tsui, with an international presence in 9 other countries as well.

IWG / Regus / SPACES

• Regus was created over 30 years ago when founder Mark Dixon noticed how local business people in Brussels were regularly conducting meetings around the small tables of local coffee shops.. The idea of offering workspace solutions for the short and long term has become a global success story and the company, known as International Workplace Group plc since 2011, now covers every continent and every time zone across the globe which now includes the brands of Regus and SPACES with a total of 29 business centres in Hong Kong:

• Regus - It is IWG's flagship brand, offering professional, fully-furnished private offices particularly suitable to tenants looking for stronger corporate image.

• SPACES - It is a more progressive co-working brand, focused on collaborative and creative workspaces.

The Execurive Centre (TEC)

• TEC was established in 2014. Although it comes to the market 5 years later than Compass Offices, it has built a solid foundation in the core business districts in Hong Kong with 11 business centres, while it has become the market leader in Central with the reputation of having the best quality among all with a guarantee of quality. It also has a global presence in 34 cities in Asia.

All these locations are situated in the core business districts in Hong Kong where there are plenty of Hong Kong serviced apartments or aparthotels to support the residential needs of employees from multi-national companies.

Determine your needs

• Consider factors like the headcount i.e. the no. of workstations/ desks required, desired location, budget, required amenities, and how much flexibility you need such as the duration of lease term.

Research different serviced office providers

• Compare their locations, workspace types, pricing, and reviews to find the best fit.

Evaluate locations

• Choose a location that aligns with your business needs and client expectations. Consider factors like proximity to public transport and other amenities.

Compare workspace features

• Look at the size, layout, furnishings, and IT provisions of the different office spaces. Ensure the workspace has the necessary infrastructure (internet, meeting rooms, reception…etc).

Understand the terms and pricing

• Assess the rental rates, deposit requirements, and any hidden fees or service charges. Inquire about flexibility in contract lengths and the ability to scale up or down as needed.

Consider the additional amenities

• Evaluate the quality of on-site amenities like lounges, gyms, cafes, and networking events.

Inspection

• Schedule a visit to visualise the site if required to ensure the expectation is met.

Platforms

• When you are looking for conventional/ traditional offices for rent, you might consider choosing CBRE, Colliers, JLL and Savills. However, they do not spend as much resources on serviced offices in Hong Kong as traditional offices, as the market is not lucrative enough. For renting serviced offices in Hong Kong, FlexiHK has become the option instead by specialising in flexible offices, being an independent platform without bias i.e. a single point of contact for Hong Kong Serviced Offices, it has maximised the benefits of office tenants.

By following these steps, you can identify the most suitable serviced offices in Hong Kong that will support your company's growth and maximise the productivity.

How are businesses incorporating flex space in their real estate portfolio to mitigate risk?

Flex space gives businesses access to fully equipped offices without requiring a long-term commitment, making it a go-to solution, especially during times of exponential business growth or market uncertainty. Benefits include the ability to expand and contract real estate commitments as needed – with flexible month-to-month terms to 60-month agreements. From a cost perspective there are also substantial advantages compared to those of a standard lease, with a model that removes fixed upfront costs and shifts focus to variable costs per desk/headcount/usage. Incorporating flex space as part of your real estate portfolio allows you to create more adaptable strategies that can align with your priorities and risk levels while avoiding long-term and/or cash intensive commitments.

How are businesses in HK and APAC using flex space to support their teams during the pandemic?

COVID-19 has forced every industry to re-evaluate its priorities. With many unknowns, decision makers are preferring to maintain the status quo and optimize financial and operational resources. Alongside this trend, many are taking a refreshed look at workplace strategy and flexibility around hybrid work and A/B teams. Flex space allows organisations to establish a secondary location/BCP site to cater to split teams when a “work from home” policy is not a viable option. Incorporating flex space into their real estate portfolio allows companies to efficiently adapt to changing circumstances, with fit-out customisations and immediate CAPEX and cost savings also available. In Hong Kong, we are seeing flex space operators expand alongside demand growth, with recent examples including 8 Queen’s Road East (IWG - Spaces), 28 Stanley Street (TEC), Chinachem Tower (The Hive) and 9 Queen’s Road Central (WeWork).

Serviced offices are typically more formal and corporate in nature. They tend to house businesses and established teams. Serviced offices usually provide occupants with telephone access, internet, and mail services as part of a monthly package. Some also include access to business equipment like copiers, AV equipment, and office furniture. Increasingly, however, we’re seeing new serviced offices adopt concepts and designs commonly associated with co-working, such as communal spaces.

How is co-working different?

There is a greater focus on creating a sense of community in co-working spaces. They prioritise networking and shared resources among tenants, and normally provide more amenities than serviced offices. Co-working spaces often have livelier, more dynamic and interactive environments to encourage innovation, which attract a greater number of entrepreneurs, freelancers, and smaller start-ups.

What are the advantages of co-working or serviced offices?

The amenities provided by operators can assist occupiers in differentiating themselves in a competitive employment market, particularly when it comes to attracting and retaining young talent. Being part of a community gives occupiers access to an established network of digital technology and apps, and can create cross-selling opportunities between businesses within an operator’s ‘eco-system.’

The short-term contracts associated with these spaces also offer headcount flexibility for project or sales teams that are looking to expand or consolidate their operations, not to mention reduced upfront capital expenditure and reduced deposits.

What are the implications and opportunities for MNCs looking to embrace flexible space?

MNCs in Asia Pacific are starting to explore the benefits of flexible space. Inspired by the amenities offered by co-working providers, some larger companies are looking to create their own modern workspaces that can meet the specific needs of their staff and clients in terms of design, technology, headcount growth, and more.

Others are choosing to partner with existing operators to house a percentage of their staff at established sites, by taking up a fixed number of desks or creating a small satellite office within a co-working space that can offer staff flexibility.

JLL