Retail Warmer This year’s rental market is expected to be active
In the core area, the rental of shops remains adjusted. At the same time, retail sales slightly improve. Retailers have recently reloaded and rented and restarted expansion. It is expected that the rental of shops will be active this year.
The core area has been rented
After a three-year adjustment of retail rents, the decline in the past year has slowed, but adjustments have continued. For instance, there is a storey on the first floor of Shop Nos. 13-16 of Yee Tung Shopping Centre, 26 East Point Road, Causeway Bay. It has an area of about 6,223 square feet and is leased at a rate of nearly $1 million per month. The location is connected to the World Trade Center and Sogo Department Store. The pedestrian flow is also very prosperous, and the transaction floor is also a rare poly-style location in the area. At the peak of retail sales, it was leased by Broadway Electric, with a monthly rent of 2.2 million yuan. It was moved out in the middle of last year. The shop had been for several months. At the end of last year, it was rented by the fashion house bauhaus for a short rental of 400,000 yuan per month until it was finally rented by a TWIST boutique. The rent also fell by nearly 50%. It is understood that at present, TWIST has branches in the World Trade Center in Causeway Bay, which is the relocation of the same district.
As a matter of fact, Broadway Audio and Video abandons some of its core area shops and has recently taken over. Shops Nos. 1 to 3, 8 to 13 and 15 on the ground floor of the Bank Centre, 636 Nathan Road, Mong Kok, with an area of approximately 9,084 square feet and a total of approximately 2.3 million Watsons Yuan pre-rent. Broadway had entered the ground floor of the banking center as early as 2000. At the peak of retail sales in 2013, the monthly rent reached 4.5 million yuan. With new tenants, rents have fallen by 50%.
In addition, No. 1, Basement 1 of the Central Chinese Bank, with an area of approximately 1,093 square feet, was leased out at a monthly rate of approximately 1.3 million yuan, and a lease of 1,189 yuan. The new tenant is the Swatch Group. The shop was rented by a watch shop in the early years. The monthly rent was about RMB 2.3 million. It was moved out in 2015 and then rented by the jewelry store Folli Follie. The monthly rent fell 22% to 1.8 million, and it is now replaced with new ones. For tenants, rents fell by another 500,000 yuan to 1.3 million yuan, and rents dropped by about 28%.
Medium-and-low-priced retailers expand their rents
In the case of new rents recently, the fashions at the lower and middle price are quite active. The most active brands should be South Korea’s MLB, which mainly sells major U.S. baseball products, and will rent approximately RMB 1 million for the underground of Queen H Queen’s Building, 80 New Queensway Central, Central. Shop No. 1 and a loft, with an area of more than 3,000 square feet, were previously leased as a flagship store in Sai Yeung Choi Street South, Mong Kok.
According to the analysis, the current overall retail market has bottomed out and the sales figures have picked up slightly. At the same time, after the rents of shops have been adjusted for several years, the peak rental period in the core area has fallen by more than 50%. It is said that the current level of rents is relatively reasonable. Therefore, since February, there has been a marked acceleration in rental of shops. In particular, retailers of medium-to-lower value goods are expecting an increase in the overall number of rental shops.