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Flexibility smooths way to instant offices

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Serviced premises emerge as practical option for companies forced out of CBDs by rising rents

Rather than commit to a long-term lease and invest in fixtures and fittings, many companies, especially start-ups and compact businesses, are hedging their bets and setting up office in a business service centre.

With a wealth of resources, well-trained staff and a business infrastructure ready and waiting, business service centres are becoming more popular in Hong Kong, on the mainland and across Asia-Pacific.

This popularity has been boosted by ever-increasing rents and a shortage of office space in central business districts, according to Wilma Wu, a general manager with Servcorp Serviced Offices, which boasts an international network of executive serviced centres and operates two centres in Central.

One factor behind this was that this year had seen office space rentals reach an all-time high, Ms Wu said. She added that grade-A office vacancy rates were less than 2 per cent for the past year.

This shortage has persuaded major corporations to move from the central business district to grade-B offices outside this area. And as consumers are price sensitive and serviced offices have the advantage of economies of scale thanks to the large amount of clients using one shared office space, they can benefit from the lower prices.

Hans Leijten, the country general manager for East Asia at Regus Group, said such demand for serviced offices had resulted in an increase in inquiries and contracts being signed for them.

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