Prime office rents in Hong Kong’s Central business district rose modestly in November – the first time in three and a half years – on the back of an overall improvement in vacancy rates, which helped buttress the negotiating stance of landlords, according to property consultancy JLL.
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Rents in Central inched up 0.1 per cent to HK$72.90 (US$9.36) per square foot from October, as the number of empty offices decreased slightly to 13.1 per cent from 13.4 per cent, JLL said. The last time that rents in Central recorded an increase was in May 2022, it said.
That reflected how tenants in Central had been capitalising on a soft rental market to upgrade their office space.
“Tenant expansion and flight to quality gather pace,” said Alex Barnes, managing director at JLL in Hong Kong, Macau and Taiwan. “This supported rental stability and prompted a modest uptick over the month.”
Among the recent notable office rental deals in Central was Hong Kong-listed Migao Group Holdings, one of China’s largest potash fertiliser companies in terms of sales. It leased a 10,201 sq ft office space at Cheung Kong Center II, relocating from Cofco Tower in Causeway Bay, according to JLL.
Several Western groups have also recently expanded into Hong Kong. Chicago-based Adams Street Partners last week unveiled its office in the city at Nexxus Building on Connaught Road in Central.