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Cost Optimisation the Utmost Priority Among Office Occupiers in Hong Kong Amidst Uncertain Operating Environment: Colliers

July 24, 2024
in Technology
Cost Optimisation the Utmost Priority Among Office Occupiers in Hong Kong Amidst Uncertain Operating Environment: Colliers
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2024/07/24 by Platform Sponsor Leave a Comment

Colliers Hong Kong Occupier Survey 2024

Download Report – Hong Kong Occupier Survey 2024 | Colliers

Challenging and volatile macroeconomic and geopolitical environments are causing businesses in Hong Kong to stay conscious about their business outlook, according to the Colliers Hong Kong Occupier Survey 2024, which was conducted between April and May 2024, soliciting views from 385 commercial property occupiers in Hong Kong.

Snapshot:

This year’s proportion of occupiers in Hong Kong who are taking neutral to positive stances on their business outlook dropped by 7-percentage points to 71%, compared to last year. As such, more than a quarter (27%) of companies are looking to downsize their office footprint, versus just one-fifth (21%) in the 2023 survey. More than half (54%) cited no change to their current office size, a similar percentage (53%) compared to last year.

Rental level (94%) remains the top consideration amongst all surveyed occupiers when choosing an office space. This is followed by building quality (73%) and floor plate size (36%), of which the latter is important to large firms as it is crucial in designing a flexible layout that can lower the cost of future redesigns.

According to the survey, approximately two-thirds (64%) of occupiers intend to remain in their current buildings. Amongst them, 43% plan to renew their lease with no change to office size, while 12% are considering downsizing and 9% plan to expand in the same building. Optimising occupied area is a key factor in their leasing decisions.

In lease negotiations, most respondents (80%) cited rent-free periods as the most favourable incentive. Additionally, 50% of respondents expressed a preference for flexible lease terms, and 48% wish landlords can contribute to capital expenditure costs.

Overall, 72% of survey respondents said they expect to use project management services when deciding their leasing strategies. Such include spatial planning (47%), design and build (44%), office units restacking (43%), and relocation consultancy (43%), reflecting the value they see in these services as they look to maximise the usage and value of their office space.

Download Report – Hong Kong Occupier Survey 2024 | Colliers

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