The impact of the trade war is emerging. The commercial roof is now in the top of the rent. Some enterprises have closed down. The full floor of Manhattan Place is re-leasing.
The Sino-US trade war has not subsided, and the impact has gradually emerged. It is understood that there has been a peak rent in the commercial buildings in recent months, mainly involving trade and procurement companies in Kowloon. Some toy companies have also closed down and the owners have reclaimed the floor to re-leasing. It is expected that the institutions will be worried about the prospects and the top rents will continue to rise.
According to market news, recently, office rental agents have received a lot of commercial roof rents. In addition to the property, there are also buildings, industrial and trade properties, and the increase in rents.
According to the news, a toy company originally rented a full-scale low-rise floor of Manhattan Place, with an area of about 16,000 square feet. The company settled four years ago and reached a renewal agreement with the landlord last year. The lease was until 2021. However, the company closed down last week and the landlord immediately re-leasing the floor. The market value is about 30 to 35 yuan.
The Pacific Place tenants are planning to move out. The lease is not finished.
As for the Kowloon East in the same district, there are other top rents. The news indicates that the 1st floor of the Kwun Tong Millennium City has an area of about 12,394 square feet. It was leased by an engineering company. Recently, the agency sought to rent a flat. The market value of the unit was about 30 yuan.
In the other Kowloon’s core business district, there is also a top rent. It is reported that the middle and high-rise units of Block 2 of the Gateway Building in Tsim Sha Tsui have an area of about 10,458 square feet. They are rented by a marketing company. Recently, they have also commissioned surveyors to let them rent and rent about 50. yuan. Another trading company leased a high-rise unit in Langham Place, Mong Kok, with an area of about 17,000 square feet. It is also looking for top rent.
On the Hong Kong Island side, the agent revealed that it has also received a lot of top rents in recent days, mostly involving Chinese-funded financial institutions. The larger one is the middle and upper floors of the second phase of the Admiralty Pacific Plaza, with an area of about 20,000 square feet. The Chinese-funded Huarong Group Renting, renting the whole floor in 2016, then renting about 120 yuan, the lease has not yet been completed.
The agent said that the tenant intends to move out early, so he entrusted the agent to find a new tenant. At present, the rent of the floor is about 150 yuan. In addition, the Central Indicators Commercial Building Guojin Phase 2, a mid-level unit with an area of approximately 2,580 square feet, was also placed on top of the lease.
Office renting on the top of the building more than doubled this month
Mai Jianwei, executive director and general manager of Knight Frank and head of the commercial department of Kowloon City, pointed out that in January, tenants were entrusted with more than 40 office rents in Kowloon, and compared with only 10 in the same period last year, the increase was 2 times. Above, the recent figures are on the rise.
He said that the top tenancy is mainly for abandoning about 1 to 20% of the floor, reflecting the intention of the organization to reduce the scale. It is mainly due to layoffs, so at the same time reduce the floor. If it involves significant reduction or even closure, the renting floor will be more many. On the rent trend, he analyzed that the top tenants need to subsidize the original tenants. In other words, the rent level is also the market price. The rent will not fall in the short term, but as the office space increases, more or less constitutes office rent. Downside pressure.