Only one in five Hong Kong businesses eye office space expansion
The gap signals a preference for space efficiency and renewals, potentially limiting expansion-led leasing while increasing pressure on landlords to improve quality and lease terms.
Only 20% of Hong Kong office occupiers plan to expand space, despite 35% expecting headcount growth and 41% anticipating improved business conditions.
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Professional services and finance firms are the sectors most likely to expand.
Business confidence among Hong Kong office occupiers has returned to positive territory, but companies remain cautious about expanding their physical footprint, according to Colliers' 2026 Hong Kong Occupier Survey.
The fourth annual survey of around 200 occupiers, conducted between June and August, found that 41% expect business conditions to improve over the next 12 months, compared with 16% expecting deterioration.
However, 35% of respondents plan to increase headcount while only 20% expect to expand office space. Professional services and banking and finance firms are the sectors most likely to expand, Colliers said.
The gap reflects a shift towards using existing space more efficiently rather than taking additional offices. Chris Hui, head of Landlord Representation, Office Services at Colliers, said occupiers are becoming "more selective rather than more expansive", with most looking to remain in their current buildings while seeking better workplace quality and lease economics.
Renewals dominate leasing strategies, with 68% of respondents intending to renew in their existing buildings. The figure rises to 88% in Greater Tsim Sha Tsui and 87% in Kowloon East.
Cost remains the leading consideration when companies assess both buildings and locations, followed by building quality and transport accessibility, according to Colliers. Among occupiers considering relocation, lower rents, better-quality buildings and more favourable lease terms were the main drivers.
Ivan Wong, head of Kowloon, Office Services at Colliers, said 43% of occupiers in Central and Admiralty were open to higher rents, compared with 60% of Kowloon East respondents and 56% in Greater Tsim Sha Tsui seeking rent reductions.
Rent-free periods remain the most sought-after incentive, while reinstatement cost waivers have become an increasingly important negotiation point, Colliers said.