PANERAI rents 30% of the flagship store in Guangdong Road
The consumer market has stabilized, retailers have regained confidence in the market outlook, and core area shops are now renewing their rents at high prices. The flagship store of Canton Road, Tsim Sha Tsui, which is now leased by the Italian watch brand PANERAI, has just renewed its contract with a monthly rent of $3 million, a decrease of $1.25 million from three years ago. PANERAI currently rents Haixing Building, No. 2 Canton Road. The whole building has 11 floors and a total construction area of 7685 square meters. The latest monthly rent is 3 million yuan for 3 years, and the lease is about 390 yuan.
According to the data, PANERAI has leased one of the buildings in the building as a branch since 2010. By 2012, it has invested 3.8 million yuan to rent the whole building as the world’s largest flagship store. By 2015, the shop will increase rent by nearly 12% to RMB 4.25 million.
The lease signed at the peak period will expire next month. Due to the owner’s rent reduction and the improvement of the retail market, PANERAI will renew the contract at a monthly rate of $3 million, which is $1.25 million lower than three years ago. The rent fell by 29.4%. At the same time, it is also lower than the monthly rent of 800,000 yuan or 21% when the shop was first rented six years ago.
Under the substantial reduction in rents, the total monthly expenditure for the three-year lease is $108 million, which is about $45 million less than before the rent reduction. Shop No. 4, Shop No. 4, G/F, Man Lee Building, No. 86-98 Canton Road, Tongdi District, with a total construction area of 2,518 square feet. It was rented out at a monthly rate of $1.25 million in May this year, with a rent of 496 yuan and a higher rent of 72.3. %. PANERAI’s continued rental volume has narrowed, reflecting that the rent is gradually bottoming out.