Location: Hong Kong
Topline:WeWork continues to seek high quality office space to address its business expansion plans. In 2018, the co-working space operator’s primary goal was to strengthen its presence and create a cluster effect in Causeway Bay, where its existing center in Tower 535 is firmly established. The secondary objective was to establish a footprint in untapped key districts.
Limited availability of vacant, large, high quality office space in Causeway Bay.
Hesitation from WeWork stakeholders. The team needed to educate WeWork’s New York-based executives on Hong Kong’s high market rent average
Resistance from landlords: many landlords are hesitant to welcome co-working space operators as tenants due to the impact that they may have on a building’s brand and the landlord’s leverage.
The team needed to convince local landlords to accept WeWork’s global standard lease terms, which were unconventional for the Hong Kong market.
Due to the high demand for office space, CBRE needed to expedite the decision-making process at WeWork’s headquarters. Once space was identified, the team needed to begin negotiations efficiently and effectively before it was taken from the market.
Solution & Outcome
CBRE highlighted WeWork’s credentials and the benefits that young, professional WeWork members would bring to other tenants of the building.
CBRE partnered with the landlord to create the optimal solution for relocating two existing tenants.
CBRE assured the client that the asking rent was the market average by sharing various reports and articles as evidence.
CBRE successfully supported WeWork in achieving its immediate business expansion plans—creating a cluster of centers in Causeway Bay and identifying prime space in Kowloon East. Despite resistance from both landlords, CBRE leveraged its professional expertise to negotiate lease terms that were beneficial to all parties.