We have continued to see positivity in the property market amid the early sign of economic recovery. On the retail front, rising local consumption has stimulated demand for F&B, and Cynthia Ng of Retail Services has seen the increase in expansions of F&B operators in the market. Rosaline Fu of Valuation & Advisory Services has observed the flexible workspace market beginning to grow again after last year’s challenges, as COVID-19 has brought a change to business needs with more companies adopting a hybrid working arrangement. Read on to find out more from our experts.
F&B operators leveraging the rising local consumption to expand
According to the Food and Environmental Hygiene Department, the total number of restaurant licence applications received in the first four months of 2021 was 546. This is 67% higher compared to the same period in 2020. We will continue to see more F&B outlets expanding in the market in parallel with local consumption, especially non-Chinese dining concepts that have increased by 11.7% in the first quarter of 2021, QOQ. In addition, light refreshment with Grab & Go and modern bakeries will continue to do well and remain sustainable, based on a local consumption. Hang Lung Properties UG/F at Gala Place in Mong Kok has just announced the launch of a brand-new dining floor of approximately 15,000 sq. ft. in August 2021, targeting popular F&B brands and operators.
Flexible workspace - signs of a comeback
Hongkong Land announced the launch of Centricity Flex (the “Space”), a two-floor 25,000 sq. ft. flexible workspace space at Edinburgh Tower, in Landmark, on Queen’s Road Central, which includes some major tenants such as PwC and Bank J. Sagra Sarasin. With a prime location, meeting the demand of a more agile workspace from mid-high tier corporates, the space features integrated F&B and wellness offerings to promote health and wellness to create a premium environment for its users.
With occupiers seeking increased flexibility, we are seeing more landlords look to add flexible workspace and amenities to their assets. We expect to see more landlords launch their own spaces and a continued trend of deeper partnership with third party operators.
We will likely see a range of flexible workspace offerings being delivered under these non-traditional delivery models, including meeting spaces, lounge spaces, and larger enterprise grade suites. These offerings will enable occupiers to execute on more flexible corporate real estate strategies going forward.