Do not do the tide retreat of the naked swimmers, office space service enterprises how to develop the second half?

The office space industry, which emerged in the “mass entrepreneurship and innovation” in 2015, has experienced a cycle of “development, prosperity, recession and depression” with the COVID-19 outbreak in 2020 as the node after several years of development.At present, the scale of the industry has stabilized, and the development mode is still to be explored.Last year, the completed office building area of 33.7576 million square meters, up 11.0% year on year;Office building sales area of 33.746,600 square meters, year-on-year growth of 1.2%.Cbre research shows that co-working operators are expected to see 20% year-on-year growth in leased space in 2021, but their average penetration rate in major Chinese cities is still below 5%.And 14 percent plan to increase the use of shared offices or business centers in the future.Office space market demand is still there, market size and potential expansion area is still large space.However, in addition to the demand, how to achieve a truly effective profit, is still placed in front of the various office space enterprises.In the previous cycle, companies expanded rapidly, taking advantage of entrepreneurship and innovation policies, favorable market conditions in the sharing economy, and capital gains.Now that the tide has ebbed, continuing losses have driven a significant number of companies out of the market.In the new industry cycle, how to make office space business profit through diversified channels will be the focus of the future development of the industry.Every company doesn’t want to be the naked swimmer when the tide goes out.If we say, in the first cycle, the overall behavioral characteristics of the office space industry are extensive and rapid expansion, and the primary task is to quickly seize the market and occupy the scale.So in the new cycle, companies will enter a new phase — operation refinement, business diversification, profit stabilization.Of course, in the new cycle, the market potential is still huge. At present, the office space business is still mainly distributed in the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, while other cities have great development potential.In the new cycle, size and speed no longer mean success.Companies must find a viable and replicable profit model, or they will face a vicious cycle of tight or even broken capital chain that makes it impossible to continue operations.Hot money in the market has cooled, and the period of unrestrained capital support for expansion has passed.Rather than expanding, new cycles require settling and thinking.From the perspective of the current industry development, office space enterprises have not yet got rid of the asset-based business model, but also strive to improve the proportion of asset-light operation.Urwork’s case shows that asset-light operations may be a better way to generate profits.In the third quarter of last year, Urwork’s total revenue reached 253 million yuan, while revenue from its space business was 98.04 million yuan, accounting for less than half of the total.At the same time, its advertising revenue grew 23.8% year on year;Revenue from other businesses increased by 366.0% year-on-year and 41.2% quarter-on-quarter, while asset light revenue reached 21.8 million yuan, up 275.9% year-on-year.Whether it is asset-light or asset-heavy, whether it is “space empowerment” or “service empowerment”, market demand objectively exists, office space industry is in the ascendant, the development potential is still in.2022 games will be held in March this year, view of organizations view annual BBS, will be released blockbuster “index, 2022 office space operations to service excellence” research results, and compared with each office space industry experts and guests discuss office space industry diversification development direction, profit model, market size and potential, focus on issues such asJointly promote the industry forward.Source: Viewpoint real estate

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