Will co-working spaces continue to thrive in 2019?

The answer is yes. Currently in Hong Kong, there are 141 flexible workspace centres in Grade A and B buildings with an average desk cost of US$741 per month and an average rent of US$121/sq. ft./annum in Grade A office.

Premium co-working space rising in prominence.There are market opportunities for operators with hospitality expertise.

Occupiers increasingly seek premium design and building amenities.Hong Kong: continual robust take-up and landlords looking to enhance their asset attractiveness with flexible workspace

Four  key rising flexible workplace trendsAmenitisationCommercial office buildings will begin to layer up with occupier-focused amenities that elevate the experience of the end user and allow for greater flexibility and choice.

Premium DesignThe flexible workspace sector will create a better product to align with the demands of the multinational corporation.

Landlord partnershipBuilding owners will increasingly become participants in the sector as a way of reacting to shifting demand trends.

New ProductsNew products will be pioneered to satisfy increased demand for flexible workspace from corporate occupiers and continue to change the way real estate is transacted.

M&AIn the short-term M&A will be driven by smaller local and regional players coming together to create greater coverage, and by operators from the US and EMEA entering the market through local partners.

The Great Room, the elevated, hospitality-inspired coworking space, is pioneering Hong Kong’s demand for coworking spaces that go beyond the conventional concept of flexible workspaces. With premium coworking space rising in prominence, the success of The Great Room proved that there are market opportunities for operators with hospitality expertise, and reflected an evolving relationship between landlords and coworking space operators to cater to shifting demand trends in the sector.

Convergence of the hotel and coworking sectors

Earlier this year, a number of major hotel chains have announced plans to upgrade their workspace offerings to meet the ever-rising expectations of global business travellers, whilst also bringing local professionals conducive spaces to work and conduct business. As the demand in the flexible workspace sector continues to grow, coworking is a natural progression for hotels, where business centres and conference rooms have been common amenities for years. These hotels’ moves reflect the gradual reimaging of the hospitality sector to connect customers in a broader way, and represent the type of innovation and greater diversity the market is expecting for serving differing needs.

 

The recent Colliers Asia Flexible Workspace Report 2019 pointed out that amenitisation and premium workspace design are rising in importance across the flexible workspace sector as landlords become more conscious of shifting occupier demands for better employee experiences. It also noted that currently, few operators can deliver a full range of amenities, presenting an opportunity for hotel or hospitality operators to fill the market gap, as they are experts in providing hotel concierge services.

 

With hotels and developers increasingly looking to transform traditional business centres into more experience-driven spaces – places that entice guests to stay, mingle and conduct their business while giving them a daytime narrative – The Great Room is helping drive this evolution with its disruptive business model and hospitality-inspired coworking concept that was previously unprecedented in the industry.

 

A Strong Partnership to Deliver a Collective Experience

The overarching trend in the Colliers Flexible Workspace Report 2019 was that landlords are starting to become more active participants in the sector – they will either build for themselves or leverage the flexible workspace sector, to create a range of amenities to better serve their occupiers and their workforce. The Great Room is ahead of many in the field with a vision to forge deeper, strategic partnerships with landlords to deliver genuine value to end users.

 

In Singapore, The Great Room is already putting this into practice by working with a developer in the early stages of a project to ensure they have design-driven and human-centric coworking amenities in place from the outset. In the future, The Great Room seeks to work with more developers early in the planning process to assist them with incorporating coworking into building designs. 

“Our approach necessitates that we truly partner with our landlords to deliver our vision. We have great synergy with landlords who share our strive to create an elevated experience. We know our clientele are looking to us to deliver premium services, infrastructure and spaces that empower them to operate at the highest levels, ” said Jaelle Ang, The Great Room Co-Founder and CEO.

 

Hong Kong’s Elite Embrace The Great Room Experience

Located in Singapore, Bangkok, and Hong Kong, The Great Room has quickly established a regional network of business clubs and coworking spaces designed for “grown up” start-ups and thought leaders. The company serves a roster of innovation-driven members, including technology, finance, and design-savvy companies.

Since opening its first Hong Kong location at Swire Properties’ One Taikoo Place in April this year, membership has quickly grown as word continues to spread. The overwhelming success has accelerated plans to open up more locations in Hong Kong as well as expand into first-tier cities in mainland China in the next few years.

 

“Since launching in Hong Kong earlier this year, The Great Room has been incredibly well received. We were confident that our unique approach to coworking would resonate with Hong Kong’s elite businesses, established companies and high-value entrepreneurs. It’s been rewarding to see this come to fruition. As we are on pace to reach full occupancy, we find that our audience places a premium on the hotel-like service-rich environment and design aesthetic that The Great Room provides,” said Jaelle Ang.

 

Beyond attracting members, The Great Room has also been embraced by investors with SGD 40 million (HKD 230 million) raised to date, further validating its  business model and vision.