What initial challenge do flex-office spaces face in Hong Kong?

Flex-office spaces in Hong Kong encounter the initial challenge of high rents. This issue arises from the overall cost structure of real estate in the city, which is known for its expensive property market. The high rent levels can deter potential tenants who are looking for flexible office solutions, making it difficult for providers to attract clients initially.

The significant costs associated with leasing prime locations contribute to these initial high rents. Businesses often weigh the financial implications carefully, particularly startups and smaller firms seeking affordable, flexible working environments. Therefore, while the demand may be present, the initial rent levels can suppress the growth and adoption of flex-office spaces in Hong Kong's competitive market.

Other challenges such as construction costs, quality of infrastructure, and competition are relevant but become more pronounced after addressing the immediate barrier of affordability represented by high initial rents.