Space abandoning One Hennessy to order more than 22 million
This year, the mainland leader of the Hong Kong market shared the space of the operator (Kr Space). Earlier, it was said that it would abandon the 7-storey One Hennessy, a new Grade A commercial building in Wan Chai. The rentable area (hereinafter referred to as the area) was about 8.3. After the rumor, the rumor was finally confirmed by the owner Huaying Group, and the space deposit was forfeited, which was expected to involve more than 22 million yuan.
In June last year, the company signed a contract with Chinachem to implement the pre-leasing of one of Henryy’s Grade One commercial buildings in Wan Chai, one of the seven floors. The total area is about 83,000 square meters. The monthly rent of the city is about 7.47 million yuan, and the rent is 90 yuan. The brand is the largest office unit in Hong Kong’s pre-leasing floor, with a lease for up to 10 years.
The property must be delivered to the tenant at the end of last month. However, the space has not been implemented as scheduled, which means that the property will be ordered to leave. Cai Hongxing, executive director and chief executive officer of Huasheng, confirmed that the space has not been stationed in the One Hennessy unit as scheduled, and the lease will be handled by the lawyer, but the deposit will be forfeited.
Times Square also uses a layer
According to market practice, tenants are required to pay a three-month rent as a deposit when signing a temporary lease. Based on this calculation, the space has already paid a deposit of about 22.41 million yuan to Huaying, which is expected to be confiscated by the owner.
Cai Hongxing said that there is no reason to understand the space rent. It is expected to be related to the expansion of the space. The relevant floor has been re-launched and the market has been released. The response is good. Many financial institutions have negotiated rents, hoping that the rent will increase. However, Cai Hongxing indicated that the 7-story floor will not be rented to a single tenant and each floor will be rented separately. As for One Hennessy’s other tenant, Shanghai Pudong Development Bank, it has received eight floors of its lease for renovation.
In addition, the space was also rented a total of 54,000 square feet on the 3rd floor of Times Square in Causeway Bay last year. However, market information revealed that the space was only used by 2 floors and the remaining 1 floor was abandoned. According to the website of the Space Department, the monthly rent of each desk in Times Square is 5,500 yuan, which is more than 54% lower than the pre-leasing of 10,000 to 12,000 yuan before the opening of the business.
Feng Kang, co-founder and chairman of Campfire, a local shared workspace operator, pointed out that the shared work space occupancy rate this year is better than the second half of last year, reflecting that the market conditions are not bad, but the development strategy of Chinese companies is different from that of local and foreign operators. Once the company has problems with the capital chain, it shrinks quickly. At present, the market’s acceptance of shared workspaces has increased. Many multinational financial companies or accounting firms have moved individual departments to work in shared workspaces, so the market is not yet saturated.