Nike dismissed 1.5 million rented Leighton Center
Sportswear brand became one of the mainstays of this year’s shop rental market. The news said that Esprit (00330) abandoned the lease of Leighton Road in Causeway Bay earlier. It was recently leased by Nike for about $1.5 million and the rent dropped by about 25%.
Esprit within 1 year 3 abandon the core area shop
According to market sources, Shops 13 and 14 on the ground floor of Leighton Centre, 77 Leighton Road, Causeway Bay, have a total area of 7,000 square feet and were leased for about $1.5 million. It is reported that the new tenant is the sportswear brand Nike, which was originally rented in the same district as the Persian Street Shop. The Leighton Center has a large shop area, and the biggest selling point is that the advertising space on the exterior wall is very eye-catching and it is of great help to brand promotion.
It is reported that the original tenant of the shop was Esprit fashion. In the early years, it rented 2 million yuan, and now moved out, the new rent fell by about 25%.
In fact, in just one year, Esprit has abandoned the three retail core shops in Tsim Sha Tsui, Causeway Bay and Mong Kok, reflecting that the business is shrinking.
With the improvement of retail sales, and the sales of medium and low-priced goods are also good, sports services have become the main force of expansion. This year, the market recorded a lot of big-handed rentals, all from sports brands.
Retail is getting better, sportswear brands are expanding
For example, the flagship store in Beijing Road, Tsim Sha Tsui, which was abandoned before Esprit, was rented by Foot Locker for about $2.3 million a month. The rent peaked by nearly half; the shop has 4 floors, totaling about 27,000 square feet.
For the sale and purchase of shops, according to the Land Registry, there is a total of about 4,450 square feet of the Liancheng Building in No. 41 Queen’s Road Central, Central. It is changed to $444.8 million. The price is nearly $100,000. The shop is now by fashion store. The rent was 1.02 million yuan, and the return rate was about 2.8%. The original owner was a senior investor, Li Yongzhen, who said that the goods were cashed and transferred to the whole property.
It is reported that he bought the above-mentioned shop for 118 million yuan in 2007, and he changed his hand in 11 years and made a profit of 326.8 million yuan.