Co-working firm TEC partners with building owner on bet that space combining office, food and events can defy downturn
- The Executive Centre (TEC) and the family that owns 28 Stanley Street in Central have invested more than US$5.1 million in the building
- The project, a first for TEC in Hong Kong, has attained 85 per cent occupancy in its first month amid tepid demand for office space
A flexible workspace operator and a landlord in Central opened a building in August that represents a bet on combining office space, food service and event facilities to attract tenants despite a downturn in the office market.
The Executive Centre (TEC) and the local family that owns 28 Stanley Street in Central have together invested more than HK$40 million (US$5.1 million) in the mixed-use building, said Nadia Zhu, regional managing director of Hong Kong, Macau and Taiwan at TEC.
The building has attained 85 per cent occupancy in the first month of full operation. It offers 500 workstations across more than 55,000 sq ft of workspace on 19 levels.
The owner started speaking with TEC in 2021 while the building was being redeveloped, said Zhu. The partnership, a first for TEC, is a long-term one, with a lease of at least 10 years plus the option to extend for another five. TEC took part in the design and even the selection of the two restaurants in the building.
“They’re a very savvy investor, but they are a family,” said Zhu. “So they don’t have the capability to operate the building unless they hire a leasing team. They made it very clear to the market that they want a flex space to operate.”