GUIDE: RENTING A COWORKING SPACE OR SERVICED OFFICE IN HONG KONG

Times are changing. Business owners now want more flexibility in how they start and run a business. They want to cut running costs while they grow. That is why coworking spaces and serviced offices have become so popular, in Hong Kong and around the world. Start-ups, entrepreneurs and early-stage companies use them to cut costs and grow at their own pace.

What came to your mind when you first heard of serviced offices? You probably thought they were too expensive, a waste of resources, and only suitable for start-ups.

That is what most people think when they hear about flexible workspace.

In reality, serviced offices are more affordable than you think. Any SME or MNC can rent one as its local office or headquarters.

A serviced office is a furnished, equipped workspace in a building run by an operator. You pay monthly for your private office. Contracts can be short term (month to month) or longer (up to 24 months). Some amenities, like meeting rooms, are pay as you use. Others, like the pantry and coffee machine, are free.

Most serviced offices can house companies from 1 to 200+ employees, depending on your size. When you rent a coworking space, you share services like meeting rooms, reception areas, breakout spaces and server rooms.

Serviced offices go by many names. You will hear executive office, managed office, shared office and business centre.

Whether you are an international MNC or a start-up entrepreneur, renting a serviced office is good for your business. Here are the main benefits:

#1. Flexible Short Term Lease

The rental terms of serviced offices are flexible. Depending on what you need, the contract can be for a month or even a few weeks. You can also be charged on a pay-as-you-use basis. Large corporation, small enterprise or start-up, you get the same flexibility.

Renting a serviced office can also improve your employees’ wellbeing. They work in a more organised environment, spend less time commuting and enjoy more independence. That makes your team more effective.

#2. Cost-Effective

Cost is one reason serviced offices have become so popular. With a flexible working arrangement, you only pay for the space you use. The offices come equipped and furnished. So you avoid extra bills and maintenance costs.

You are charged based on what you use. Serviced offices run on a pay-as-you-use basis. That frees up cash for other important business expenses.

With a flexible work solution, your company saves money. It also frees up capital to invest in the things that grow your business.

#3. Access to All the Needed Facilities to Run a Business

Start-ups and early-stage companies often lack the resources to buy all the equipment they need.

A serviced office or coworking space gives them the facilities to run their business. That includes meeting rooms, conference rooms, a pantry, phone booths and a server room.

#4. Access to New Market

If you want to expand to a new location or enter a new market, serviced offices make it much easier.

You do not need to pay a huge amount to lease an office, equip it, renovate it and cover the bills that come with it, like electricity, water and building management fees.

All you need is a reliable agent who can find you the right coworking space or serviced office. Whatever market you want to enter, a flexible workspace cuts the hassle of getting started.

#5. A Chance to Brainstorm and Interact with Other Established Business

A typical serviced office houses several companies. You can brainstorm and talk with more experienced entrepreneurs. You can learn from them and grow your network into other industries. That is a golden opportunity, and you get it when you rent a coworking space or serviced office in a good location.

#6. Availability of Meeting Spaces and Reception

Most serviced offices have top-notch meeting spaces, reception areas and other facilities that boost your company’s image. Some of these facilities are shared between the companies in the centre. Reception areas are usually well equipped, with professional receptionists employed by the building manager or operator.

Meeting rooms can be booked by the hour. Book early to avoid surprises, because every tenant wants them. You do not want to hold your client meeting in the open area of the serviced office.

Starting a business comes with uncertainties. Fear of failure stops many people from acting on their ideas. With a serviced office, you can rent space temporarily and test whether your idea works. You will be surrounded by like-minded entrepreneurs while you do.

You will learn from some of the best. They will tell you how to keep going when things get tough. Even if you feel like giving up, the other entrepreneurs around you will inspire you. If you are still unsure whether to rent a serviced office, here are the differences between serviced offices and traditional offices.

Expenditure

A traditional office needs high upfront capital. You invest in office design, interior fit-out and bills. At the end of the lease you also pay for reinstatement, which means putting the office back to its original state. So the starting cost of a traditional office is very high.

With a serviced office, you spend much less. All you need to start is your first rental payment and a deposit, usually between 1 and 3 months, depending on the terms.

Commitment Terms

A traditional office usually means a fixed contractual term, most times 2 to 3 years. You may end up paying for longer than you need. Or you get stuck in an office that is too small after 2 years, and that slows your company’s growth.

Serviced offices let you pay as you use. The commitment is usually between 3 and 12 months. Some companies ask for a 24-month lease, but only a few operators offer it. That is why companies that need a short-term commitment choose flexible workspace.

Through NextSpace, you can access over 100 locations, 2800 office desks and 350 fully furnished office spaces in Hong Kong.

Flexible workspace is a general term. It covers serviced offices, coworking spaces, virtual offices and managed space.

Serviced Office

A serviced office is a flexible workspace solution. It is usually an enclosed office room, fully furnished with desks, chairs and storage. It comes equipped with everything you need to run a business. As described earlier, facilities like meeting rooms and conference rooms are usually pay-to-use.

Coworking Space

A coworking space is a flexible workspace without an enclosed office room. You sit in an open space. You choose between renting a hot desk or a dedicated desk. Coworking suits people who are on the go and prefer collaboration over privacy.

Virtual Office

A virtual office membership gives you a recognised office address at low cost. The address sits in a coworking space or serviced office. Overseas companies often use it to give clients a strong first impression. Most centres provide mail handling and phone answering services.

People often use the terms “serviced office” and “coworking space” as if they mean the same thing. Both are forms of flexible workspace. But they are quite different.

In a coworking space, employees of different organisations share one open office. This arrangement encourages collaboration across professions.

You should choose a serviced office if you need:

• An enclosed private office to run your business
• Access to viable business locations
• A lower cost of renting an office space
• No building maintenance expenses
• Built-in meeting rooms and manager rooms

If you rent a serviced office, you may share meeting rooms or communal spaces with other companies in the centre. If you are a freelancer or a lean start-up with a collaborative culture, a coworking space may suit you better. You can rent a hot desk or a dedicated desk by the hour, day or month.

A coworking space gives you the facilities you need, but usually no administrative support. Administrative support comes with a serviced office. Consider a coworking space if you need:

• More flexibility
• Temporary working space
• A highly productive working space that encourages collaboration
• Low costs and low commitment

Now you understand the difference between a serviced office and a coworking space.

Hong Kong has some of the most expensive office space in the world. The coworking market has existed here for a while, and it keeps growing fast. That makes Hong Kong the city with the most flexible workspaces in Asia.

There are over 250 business centres and serviced offices in Hong Kong. The city has about 90 million square feet of office space. Now you see why Hong Kong has the highest number of coworking spaces and serviced offices in Asia.

Serviced Office Price in Hong Kong

There are over 250 serviced offices in Hong Kong. The price you pay depends on the building’s grade, facilities and location.

Here are the usual price ranges for serviced offices in Hong Kong, by grade and facilities:

Grade AAA: usually HK$8,000 to HK$12,000 per person.

Grade A: usually HK$6,000 to HK$7,500 per person.

Grade B: usually HK$3,000 to HK$5,500 per person.

Serviced Office Cost In Hong Kong

Serviced office prices in Hong Kong are quoted per workstation or per person. The price depends on several factors:

• The reputation of the property, the location, and the demand for serviced offices in the area
• The facilities within the office space
• The contract duration
• The market turnover of flexible workspace solutions in the city
• How easy it is to reach the serviced office by public transport
• The position within the property, which can also affect the price
• Additional features like meeting rooms, telecoms and IT

The amount you pay always depends on these factors. That is why some serviced offices cost more than others.

Facilities In a Serviced Office

If you rent a serviced office in Hong Kong, here are the facilities you will enjoy:

• Enclosed office space
• Pantry
• Conference rooms and meeting rooms
• Breakout rooms
• Telecoms and server rooms

The services you will enjoy are:

• Well-staffed reception desk
• Security
• Maintenance
• Office cleaning
• 24/7 access

Depending on the centre, you may also get administrative support, storage facilities and IT support.

Here are the people who use serviced offices:

• Start-ups and entrepreneurs: serviced offices suit start-ups and entrepreneurs who want office space without long-term contracts or hidden costs.
• Businesses expanding to new markets: these businesses often need a serviced office on a short-term contract.
• Businesses going through contraction or expansion.
• Businesses navigating a pandemic, in a wait-and-see position.
• Project-based teams.

Are you looking for a serviced office, coworking space, or business centre in Hong Kong? Search no more.

Contact NEXTSPACE. We can link you with the right serviced office or coworking space for your price range and requirements.

If you need a serviced office in Sheung Wan, Central, Admiralty, Wan Chai or Causeway Bay, we will help you find the right space for your expectations and price range.

Learn more about our business to see how we can link you with the right serviced office space.