WeWork's China Unit Explores Hong Kong Expansion to Cater to Web3 and Crypto Firms Amid Mainland Bor

Posted on 12 June, 2023 | By Property852

WeWork Greater China, a subsidiary of the US coworking space provider WeWork, is considering expanding its presence in Hong Kong due to increased demand from Chinese firms seeking offshore opportunities. WeWork Greater China, in which Trustbridge Partners holds a majority stake, has seen numerous opportunities in Hong Kong since the reopening of the border with mainland China in January. The company reported a 117% increase in the value of its transactions in the Hong Kong market in the first quarter of this year compared to the previous quarter. Many mainland enterprises are targeting Hong Kong as their first stop for expanding globally, while global companies are also eyeing Hong Kong as a gateway to the Chinese market.

WeWork Greater China has opened a 10,000 square foot coworking space at 9 Queen's Road Central and has achieved an occupancy rate of 70 to 80 percent. The company had previously reduced its footprint in Hong Kong during the pandemic but remains committed to the WeWork brand and services standards while having more autonomy to meet local market needs.

There is growing demand for flexible working spaces from Hong Kong's booming Web3 and virtual-assets industries since the government issued new guidelines allowing retail trade in cryptocurrencies. WeWork Greater China has received numerous inquiries from companies looking to set up businesses in these sectors in the city. The firm currently operates seven spaces in Hong Kong, occupying a total of 300,000 square feet, and is in discussions to open more coworking spaces.

Although Hong Kong's grade-A office market has experienced rising vacancy rates, the coworking sector still has room for growth. The flexibility offered by shared offices has become a trend for small start-ups and global enterprises, as uncertainty has become the only certainty in the current era.

Apart from Hong Kong, WeWork Greater China is also considering projects in Beijing, Shanghai, and Shenzhen. It recently opened a new space in Wuhan and plans to open two projects in Beijing and Shanghai over the next two months. With about 100 sites in 12 cities in China, WeWork Greater China currently has approximately 100,000 individual members and 10,000 enterprise members.

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