How Is The Flexible Workspace Market Positioned In China?
Changing the workforce and changing business strategies has led to the emergence of a flexible workspace industry in China.
The China Flexible Workspace industry has been observed at a growth stage. The supply has drastically increased from ~ sq ft in 2016 to ~ sq ft in 2019. This is owing to an increase in participation from local real estate developers, an increasing number of unicorn start-ups, entry of major local and international player’s post-2015, increasing commercial office rents in tier 1 cities, changing work-style and increasing demand from large enterprises.
By Type of Flexible Workspace: Serviced Space accounted for the highest market share in terms of supply by capturing ~% in 2019. This was followed by Hybrid and Co-Working Spaces. The presence of small operators has driven the supply of the co-working segment whereas serviced spaces and the hybrid model are majorly built by bigger players like WeWork (Enterprise Solution), Atlas Workspace (Office as a Service) and others.
By City: Shanghai contributed majority share in flexible workspace supply in China followed by Beijing, Shenzhen, Hong Kong, Chengdu, and Guangzhou. Shanghai and Beijing are facing a situation of oversupply. Due to the emergence of localized players in Beijing, Chengdu and Guangzhou the supply has increased at the fastest pace in these cities. The industry is observed to be at its nascent stage in Hong Kong, Chengdu and Guangzhou as the penetration rate of a flexible workspace is lower in comparison to Beijing, Shanghai, and Shenzhen. The average desk cost is highest in Hong Kong followed by Beijing, Shanghai, Guangzhou, and Chengdu.
How Has The Demand Changed In China Flexible Workspace Market?
The demand has also been growing at a rapid rate. The total occupied flexible workspace has increased from ~ sq ft in 2016 to ~ sq ft in 2019 and the average occupancy rate has increased from ~% in 2016 to ~% in 2019.
By End-User Type: Enterprises accounted for the highest share in the overall demand of flexible workspace in China followed by MSMEs/Start-Ups and Entrepreneurs/Freelancers. The adoption of the “hub and spoke” strategy in order to provide employee satisfaction and in order to expand business in different geographies has derived the demand for flexible workspaces by enterprises. Start-Ups and MSME’s are looking for office spaces which provide a community to make business partnerships and flexible rental period to accommodate the effect of business uncertainties.
Supply-Demand Gap Analysis In China Flexible Workspace Market
The Supply-Demand gap in the flexible workspace industry has been increasing during 2016-2018 as Shanghai and Beijing have been facing oversupply and new localized players are emerging in another tier 1 and tier 2 cities such as Hi-Coffee from Chengdu and More+ from Wuhan. The supply-demand gap decreased Post 2019. In 2019 operators shifted focus from expansion to efficiency in order to increase occupancy at its existing locations in order to bring business sustainability and profitability. Operators are continually investing in enhancing customer experience by conducting interactive events, upgrading technology which provides business assistance to members. Operators are providing business assistance services such as business concierge, HR and payroll management, accounting and bookkeeping services and others.
What Is The Future Outlook And Projections For China Flexible Workspace Market?
The China Flexible Workspace Market has been anticipated to grow with a CAGR of ~% in terms of supply and ~% in terms of demand during 2019-2025F. With a shift in priority to efficiency over-expansion, the demand is expected to grow at a faster pace in comparison to supply and the supply-demand gap is expected to fall. Operators are continually investing in increasing customer experience by providing business assistance services and by developing their technological infrastructure.
Key Segments Covered:-
By Type of Flexible Workspace
Serviced Spaces
Hybrid Spaces
Co-Working Spaces
By City
Shanghai
Beijing
Shenzhen
Hong Kong
Chengdu
Guangzhou
By End Users
Enterprises
MSME’s/Start-Ups
Entrepreneurs/Freelancers
Key Target Audience
Flexible Workspace Operators
Office Brokers/Aggregators
Commercial Real Estate Companies
Venture Capitalist and PE Firms
Real Estate Consultant
Office Furniture Providers
ICT Providers
Time Period Captured in the Report:
Historical Period – 2016-2019
Forecast Period – 2019-2025
Companies Covered in the Report:
Flexible Workspace Operators
Ucommune
Regus
WeWork
MyDreamPlus
Distrii
Kr Space
SOHO 3Q
The Executive Centre
People Squared
Compass Office
Servoffice
Atlas Workspace
Key Topics Covered in the Report:-
China Flexible Workspace Market Analysis
Servcorp Beijing Flexible Workspace Market
Beijing Flexible Workspace Market Major Players Share
China Bespoke Office Market Analysis
China Flexible Co-Working Spaces Industry growth
China Flexible Workspace Industry Growth
China Flexible Workspace Market Growth Rate
China Flexible Workspace Market Share
China Joint Office Market Growth
China Office Industry Growth
China's crowded co-working industry
Existing Gaps in China Flexible Workspace Market
Flexible Office Space Market in China
Hong Kong Flexible Serviced Spaces Market
Hot Desks & Coworking Space in China
Largest Coworking Space Companies in China
Number of Lease Signed by WeWork in China
Serviced Office & Office Rental Market Beijing
Top 10 co-working spaces in China
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
