"There's a shake-out in the flexible office space," said Paul Salnikow, global CEO of The Executive Centre, which entered China in 2001 and currently operates 45 premium flexible working centres in nine Chinese cities.
"Our focus this year is 'management output'," Mao Daqing, founder of Ucommune, one of the largest co-working space operators in China, told Reuters.The company expected to partner with enterprise clients and open another 30 flexible working centres for them this year, providing design and management services, from 15 currently, he said. Ucommune's own branded centres would add five to 10 more to the over 200 already in place.
READ: Commentary: Booming co-working spaces part of the new economy, but regulatory frameworks remain outdatedA survey of Chinese flexible working space operators by real estate consultancy CBRE in January found that around 68 per cent planned to slow or halt expansion this year. Stanley Ching, Citic Capital's head of property, said operators were increasingly seeking fit-out subsidies and leasing on profit-sharing models with landlords, as they become more reluctant to pay high rents to secure space.
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