Despite having the highest office rental prices in the world, Hong Kong remains the destination spot for international businesses and startups, but there is simply not enough space to accommodate them all.
Hong Kong, the quickest growing economy in Asia, has been hit with waves of start-ups and Small-Medium Enterprises (SME’s) in the past few years. The city’s key international location coupled with its talent-rich job force has made it the place-to- be for entrepreneurs.
According to SMB World Asia, Hong Kong has seen a 206% increase in startups in the past 7 years. It’s no surprise that office space prices have risen to astronomical levels in Hong Kong. The city boasts the highest price per square foot of office space in the world and that statistic is not likely to change any time soon. In today’s economy, the cost of putting down your laptop is simply too high for many new enterprises.
However, this may not be a bad thing for existing companies. Many businesses, taking advantage of the office space crisis, have begun to lease their unused office space and desks to this growing start-up market.
Adding a Few Desks to your Office Could Earn You Thousands
Since 2013 when various companies began focusing on startup investment, the number of startups taking roots in Hong Kong has sky rocketed. The startup boom has changed the economic scene of the city, especially in the office spacing sector.
For companies that have a little extra office room, buying a few desks and chairs and renting the space out as a private sublease could earn them easy additional cash every day. With a single desk going for anywhere between HKD $3000-6000 per month, unused office space could be an extremely valuable asset for companies.
Statistically speaking, the large majority of startups have a company size of fewer than five people and more than 20 % of startups have three or fewer employees according to a report by Business Insider.
The small size of startups makes them extremely easy to accommodate for any office. Making room for three to five people is easily achievable for many businesses. With a little planning, companies can easily reevaluate their space, add a few desks, and begin profiting off of space they already own. In addition, the number of startups in Hong Kong has been steadily growing, thus the market demand for office space is only going to rise.
How to Use Own Space as an Investment
When it comes to actually subletting your office, there are a few things to consider. The main issue when it comes to leasing your unused office space is uncertainty. Startups are particularly unstable in their early years; their needs and requirements for space are constantly changing. With their constantly changing status, very few startups or SME’s can sign a traditional long term lease.
In addition, your own needs as a company are sometimes uncertain too. Your current unused space is privy to change and may be needed in the future upon expansion. Whether you eventually need to downsize or acquire a new office, it is hard to predict what your company and your office space will grow to become. The bottom line is neither startups nor businesses want to dive into a long term agreement when dealing with unused office space.
Thus, finding and managing a flexible deal is crucial. Most traditional real estate agents and brokers are reluctant to deal with this kind of flexible lease since it means little profit for them.
A Flexible Online Marketplace
The solution for companies with idle space is a flexible online marketplace that match clients who are renting out office space to those in the market who wish to rent affordable and furnished space. Businesses can constantly update their office availability and can thus profit off of their unused space in a customizable way.
As more and more new SME’s and startups struggle to find space in Hong Kong, maximizing your office space and creating private sublets is amongst the easiest ways to earn more profits each month. Online Marketplace removes the hassle of brokerage and puts you in charge of the decisions. Making profits off of something you already own should be easy and flexible.
Currently, Quikspaces is the only company in Hong Kong offering this service to companies. Businesses can easily upload their available office space, create a profile, and be matched with a startup or SME interested in that space.
We take the confusion out of office rentals—our platform simply takes your idle office space and turns it into profit for you with no brokerage fees.
Renting out space should be easy and flexible. Get started today here.