Grade A office space is just that – Grade A. The cost is both daunting and prohibitive making every single inch enormously valuable. Nowhere is that more true than in Hong Kong, home to the most expensive premium office space in the world and a staggering 35% more per square foot than number two on that list midtown Manhattan. Even as restrictive measures were put in place during COVID, with a number employees working from home, space has still been at a premium for local companies. All this means that important choices have to be made.
“What we are seeing now in Hong Kong and around the region is that companies are prioritizing their most important asset - human resources,” said RedBox Storage CEO Tim Alpe. “Whatever limited office space they have is dedicated to creating a comfortable and productive working environment for their employees. They need to find ways to unclutter their offices so they are looking at mini self-storage providers.”
Any self-respecting financial controller is constantly on the lookout for methods to control the bottom line and few offer a better solution than creative and constructive use of space. “Naturally, companies are going to focus on cost saving, particularly with a slow economic recovery,” said Alpe. “Outsourcing your storage needs is pivotal to that. But there are a number of other benefits as well for off-site storage including a safe and secure environment for valuable documents.”
While many of the bigger firms occupying Grade A office space are reassessing their needs, on the micro level smaller entrepreneurs face an even more daunting challenge. With both cash flow and rent relief in short supply these days, a couple of expensive months could be fatal to their continued survival. A common refrain among smaller entrepreneurs is how quickly things seem to pile up around them, compromising what little space they already have. If these smaller companies are also in the manufacturing field, they need space for their inventory as well. Complicating issues even further has been the supply chain issues created by Covid, making the distribution of mail order products more and more difficult. As inventory continues to pile up, finding storage solutions becomes crucial.
Exorbitant rental prices are not confined to office space in Hong Kong. Retail rentals are also the most expensive in the world with shops in Causeway Bay paying more than even those on posh Fifth Avenue in New York, London’s trendy West End and Tokyo’s stylish Ginza area. Brick and mortar stores are constantly trying to find room for inventory, particularly as the season’s change and certain goods need to be stored for later display. Seasonal sales and clearances often require buying inventory well in advance and as lack of space become more acute, so too does the need for retailers to be more judicious in their choices. Any kind of surplus supply will need to be stored properly in a climate controlled and secure environment otherwise it becomes virtually worthless.
“With all the disruptions to the logistics chain in transporting goods to Hong Kong, we have been mass producing our product and using an off-site storage company here to keep an over-supply in stock,” said Hong Kong manufacturer and retailer Carl Cho. “Things like the recent energy saving policy in China have had a big effect,” he said. “With retail rents being as high as they are, you cannot afford to go without your product for even a week or two and having it in storage nearby has made a huge difference.”
For many entrepreneurs, their living quarters double as an office. The same is true for those employees who have been working at home during COVID as well. Storage space has become a primary issue.
In some businesses, most notably the medical and legal professions, keeping a paper trail is a legal necessity making the storing of documents and inventory a high priority. Whatever space they may have is going to be primarily devoted to meeting with patients and clients. For these companies, use of off-site storage is no longer optional. It has become a necessity and compounding the issue further is the need to store invaluable records both securely and orderly.
As urban centers grow and rapidly expand, the demand for compliant space has grown along with them. Whether a large corporation or a small entrepreneur, savvy business managers now understand the myriad values that compliant off-site storage provides. It’s a solution whose time has come.
About RedBox Mini Storage
RedBox Mini Storage, Hong Kong’s largest storage facilities.
RedBox’s storage solutions: Self Storage | Self-managed storage units to suit every need; Door-To-Door Storage | We pick up, store and deliver your items when suits you; Business Storage | We offer tailored and flexible solutions to maximize your business performance; Packaging & Merchandise | Everything you need to protect your belongings.
RedBox Mini Storage make de-cluttering your residence simple and stress-free. For however long you need space for, we’re here to help. Whether it’s extra furniture, ski equipment, seasonal clothes or an extensive collection of rare antiquarian books, RedBox Mini Storage have a personal storage idea that will feel custom-made for you. Just tell us about your clutter and we’ll advise you the rest of the way. Your valuables are always in our care.
For more information on RedBox, visit www.redboxstorage.com.hk.
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Hong Kong's Largest Storage Facilities