Tsim Sha Tsui gold giant shop splitting rent 53% asking price 170 million per month, such as 8 months without result
Although the retail market is slightly warmer, the rent of front-line street shops has not stopped falling. Some owners of street-based shops in the core area, though hoping to rent their hand shops at higher rents, have no choice but to accept the offer. However, Substantial reduction in rent to undertake. For example, the existing rent of Haiphong Road, Tsim Sha Tsui, is rented by the bank. The old rent is as high as $ 2.8 million per month. However, the original tenant refused to renew the rent. The landlord subsequently leased $ 1.7 million a month for rent. After the expiry of the old lease Short-term rental of 1 million yuan per month temporarily rented out to the original tenant, hoping to find a new tenant to 1.7 million rented, but unfortunately for more than eight months have failed to bear fruit, the recent final 1.3 million renewal to the original rent Passengers, the lower the amount of the old lease 1.5 million yuan (about 53.6%).
The old rent 2.8 million merchants refused
Located at Shops A and B, Ground Floor, Tatmadas Tower, 38-40 Haiphong Road, Tsim Sha Tsui, the reduced rent block has a gross floor area of approximately 2,100 square feet. It was hoisted by Zhaoshengchaosheng, a bank with banks in Guangdong, Hong Kong and Macau in 2013, 1.5 times the monthly rent of 2.8 million yuan lease, 1333 yuan per square feet rent.
It is learned that the tenancy agreement expired in March this year. Since the previous rent was too high, the tenant did not want to exercise the renewal of tenancy and the landlord had already leased the property before the expiry of the contract. The asking price was $ 1.7 million and the amount was already $ 1.1 million lower than the previous lease. (About 39%). However, due to the lack of rent-sharing by tenants, the short-term leases will continue to be rented by Zhanzhou Zhishengsheng from Guangdong, Hong Kong and Macao for a monthly fee of about $ 1 million.
However, up to eight months after the letting up of leasing shops, no other retailers have yet to place a bid in favor of the owners for rental value. The landlord had to renegotiate the lease agreements with Zhan-Sheng ZHOU, Sheng-Sheng of Guangdong, Hong Kong and Macao. Sources pointed out that the Guangdong, Hong Kong and Macao Zhan Zhisheng just renewed a monthly rent of 1.3 million yuan more than three years, renting 619 yuan per square foot, not only 53.6% lower than the old rent, but also 23.5% lower than the landlord intends to rent, pay 400,000 yuan a month less.
Based on the three-year lease terms, the owners of Guangdong, Hong Kong and Macao, such as Zhan Zhishengsheng, renewed the rent as early as the owner’s asking price. The rent will be 61.2 million yuan for the whole period. After a further reduction of rent, only 46.8 million yuan will be required for the entire period, amounting to about 14.4 million yuan Rent expenses.
At present, there are individual shops in the core area. Owners have not found any new tenants and they agree that the temporary rent should be shortened by the original tenant in order to avoid losing their space. For some time, they will wait and see for rent rebound. However, rent will be cut as the market rent falls further For customers such as Shops A2, A3, B and C on the ground floor, 1 to 3 Pak Sha Road, Causeway Bay, the gross floor area is about 1250 square feet. Bonhomé (00653) was originally rented at $ 1.13 million last year. Million, Zhuo Yue discarded, but the shop has not rented out, it accepted Bonjour “short rent” for one year, until recently due to the leasing of restaurants, Bonjour only to move out, but the new lease monthly rent of only 500,000 yuan, 400 yuan, cheaper than full bid half.
Thousands of feet shop more easily absorbed
CB Richard Ellie, Executive Director, CB Richard Ellis, Hong Kong Consultant & Transaction Services Shop [chart] said that most of the renewal of tenancy rights are listed as original rent or above for renewal. However, the rents of shops have been This is why the majority of tenants who expire this year will not exercise their renewal lease. Instead, they will wait for the landlord to reduce their rent and sign a new lease upon expiry of the lease.
Although the tenancy market has become more stable, the actual demand has not been recovered. There is still disagreement between the tenants and the tenants on the rent. At present, the core area of about 1,000 square feet of floor space easier to be absorbed by the market, the other hand, the larger shops, lease rate is still slow.