Market Update Summary - February 2017
- Despite a slowdown in leasing activity around the Chinese New Year holidays, net take-up in the overall market still amounted to 54,300 sq ft in January on the back of consolidation and/or relocation ...
Market Update Summary - February 2017
Despite a slowdown in leasing activity around the Chinese New Year holidays, net take-up in the overall market still amounted to 54,300 sq ft in January on the back of consolidation and/or relocation requirements. In one of the more notable transactions, Alibaba leased about 92,000 sq ft (gross) at Times Square in Causeway Bay to house their newly acquired media arm South China Morning Post.
In Central, the occupier market returned to growth with net take-up amounting to 45,100 sq ft as PRC financial services firms expanded and set up new offices. China Huarong, for example, expanded into Three Garden Road (about 9,000 sq ft, lettable) whilst Guangzhou-based asset manager SFUND leased a whole floor (9,400sq ft, lettable) at Bank of China Tower for its newly established operations in the city.
Tenant decentralisation gathered pace amid a widening rental gap between core and non-core office areas. A US financial services firm is relocating from Central to Taikoo Place whilst Freshfields Bruckaus Deringer reportedly has leased two floors at One Island East; which, if transacted, would mark the first UK ‘ Magic Circle’law firm to move out of Central.
The opening of the new South Island MTR line continues to stoke tenant interest in Wong Chuk Hang. Valentino leased 1.5 floors at 41 Heung Yip Road whilst Mayer Brown JSM is moving its back office to a whole floor at the same building from Central.
Limited availability and sustained PRC demand saw rents in Central climb 1.3% m-o-m, closing in on their pre-GFC record highs set in 2008. Meanwhile, rents in other major office submarkets, with the exception of Kowloon East, also trended higher against a tight vacancy environment.
In his 2017 Policy Address, the Chief Executive announced a number of initiatives to increase the commercial floor area in Kowloon East by 50.6 million sq ft, including increasing the development intensity in the Kai Tak Development Area over two phases.
Market Update Summary - 3rd Quarter 2016
- Lease expiries along with the on-oing relocation of tenants affected by the upcoming redevelopment of Warwick House and Cornwall House in Quarry Bay contributed to a net withdrawal of 76,400 sq ...
Market Update Summary - 2nd Quarter 2016
- In Q2 2016, leasing demand in Central was driven by expansion requirements from the banking and finance sector. Notable transactions included Julius Baer expanding into a whole floor at Two Exchange ...
Market Update Summary - 1st Quarter 2016
- Capped by a tight vacancy environment, leasing activity remained subdued with the total number of new lettings dropping 5% m-o-m to 36 transactions in March, about 35% below the monthly level ...
Market Update Summary - 4th Quarter 2015
- Central The main themes of the rental market in Central – relocation and inbound demand – remained consistent during Q4 2015 and throughout the year since the implementation of ...
Market Update Summary - 3rd Quarter 2015
- Central, Admiralty and Sheung Wan: Financial sector remains as the main occupiers among office spaces in Central, Admiralty and Sheung Wan. With a low vacancy rate and a shortage of major ...
Market Update Summary - 2nd Quarter 2015
- Central, Admiralty and Sheung Wan: Tenants from financial sector remain as the main occupiers among office spaces in Central, Admiralty and Sheung Wan, probably contributed by the result of ...
Market Update Summary - 1st Quarter 2015
- Kowloon East Commercial activities at Kowloon East business are becoming mature which is appealing to varieties of companies with their head quarters settled down in the area. Expected to ...