THE biggest landlord in Hong Kong’s Central business district is opening its first flexible office space in one of its premium buildings to capture the demand for agile workplace leasing.

Hongkong Land Holdings Ltd. converted two floors in Edinburgh Tower to a 320-desk flexible workspace that opened its doors yesterday. Leasing term in the office ranges from as short as three months to three years.

Hongkong Land said the space mainly targets financial companies and professional services. An unnamed international financial institution has rented a suite, according to the landlord.

The co-working space helps the century-old landlord owned by Jardine Matheson Holdings Ltd. capitalize on tenants’ changing need for smaller offices and shorter leases. The company is joining Swire Properties Ltd. to become one of the few large developers in Hong Kong to operate flexible office spaces.

Hongkong Land’s gross revenue from its office portfolio in the Central district dropped by 1.2 percent in 2020 from a year earlier, with vacancy rising to 6.3 percent at the end of last year from 2.9 percent in 2019.

Hong Kong’s co-working industry has seen a setback during COVID-19 but has recovered gradually. (SD-Agencies)