Hong Kong Grade A office rent is set to rise by 13% between now and end 2020, driven by growth in high-value service sectors. With high rents here to stay, corporate occupiers should take an holistic approach to real estate strategy which factors in demographic changes, new technology and the availability of flexible working space. The report highlights rents in prime locations are expected to grow faster than in decentralised locations where new supply will be concentrated, and the gap in rental values will widen further between prime and decentralised location.
Rather than focusing purely on spatial requirements and rental cost, companies should incorporate factors that will affect future business performance when formulating a forward-looking workplace strategy, and maximise employee engagement during the process. Key factors including:
- Demographic shift – millennial-friendly workplace design
- Technology adaptation – customised technology infrastructure which supports flexible work styles with a combination of mobile and fixed devices
- Agile and flexible real estate footprint – flexible workspace
- Creation of a more engaging workforce – employee centric engagement strategy