I searched for new office for expansion in past 2 days. I was shocked the commercial building rental has gone so low. $22 (Hong Kong Dollar) per sq foot in Central and well furnish; $17 per sq foot in Quarry Bay and ready to use. Which last year, we hardly find anything below $30 in various area, including Kwun Tong and LCK.
The situation inspired my curiosity and thinking: what type of business are retreating from the market? No doubt, hospitality, catering and retail are largely affected, but why commercial building? The "middle-man" business.
The Middlemen are Disappearing
The world is changing. Markets have crashed. Jobs have disappeared. Industries have been disrupted and are being remade before our eyes…It’s all crumbling down. In every part of society, the middlemen are being pushed out of the picture. I look back to all these available office, most of them look like a trading company.
Where to from here?
The pandemic was a wake-up call that the unexpected and the unlikely are more tangible and plausible than anyone previously anticipated. For many, it has been a bitter reality: painful, costly, still unresolved. For a few lucky others, it has offered an unforeseen windfall; one that organizations have struggled to capitalize on.
Either way, we must accept that pandemic-induced changes in strategy, management, operations, and budgetary priorities are here to stay.
We are on the leading edge of a self-reinforcing process, promising even greater acceleration ahead. This presents an enticing opportunity for company who can manage complexity and drive competitiveness by tying digital transformation to business priorities—while others are still waiting for things to “go back to normal.”
There is no going back to normal. The risks and opportunities are too great. The stakes are too high.
This new world permits no time for complacency or nostalgia. There is no going back to what used to pass as normal. Company need to prepare their businesses for ongoing uncertainty, inevitable disruption, and never-ending change. MERCURY transform itself twice last year to cope with the changes. What about you?