- Although expansion by flexible space operators in China is slowing, their total office footprint in tier I cities increased by 3.5% q-o-q in Q1 2019, and now stands at 2.2 million sq. m..
- By city, Shanghai is home to the largest volume of flexible office space in China. Activity remains solid in tier II cities, with recent quarters witnessing the entry of several new flexible space providers.
- As flexible space operators have already built critical mass for their service offering, CBRE expects 2019 to herald a shift in strategy from expansion to efficiency.
- This will include a focus on the following:
- Improving occupancy: Attracting new and repeat members, increasing space densities, and shortening sales cycles to achieve desired occupancy
- Customising enterprise solutions: Targeting corporate occupiers and modifying service and product offerings to cater to this demand
- Forming creative partnerships with landlords: Partnering with landlords via management contracts to enhance portfolio agility
- Creating multiple sources of income: Providing niche services such as F&B or industry events to attract new members and increase profits
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