The rent on the 4th floor of Russell Street has been cut by half.
Luxury retail is difficult to recover from the peak period, and merchants who rent at the peak period intend to leave the lease early. It is now rented by the Italian high-end underwear brand LA PERLA as the flagship store in Hong Kong. The whole building is located at 22-24 Russell Street, Causeway Bay. [Picture], the roof was rented earlier, and the city’s watch brands were rented to the end, with a monthly rent of about 3.5 million. Yuan, the higher position fell more than half.
At the end of 2014, LA PERLA pre-leased the entire building at 22 to 24 Russell Street, which was still under reconstruction. The building has 4 floors and the total floor area is about 8,000 square meters. The large advertising space on the external wall is 7.5 million yuan per month. leased about 938 yuan. The property was completed in September 2015 and will be rented in the same month for a period of five years until 2020.
Watch brand material monthly rent 3.5 million stationed
However, LA PERLA owed rent at the end of last year and was rented by the owner Emperor International (00163) for about 9.21 million yuan. After that, all the arrears were paid. According to the indication, the Emperor agreed to reduce the rent of the shop to 5 million yuan per month from April last year to April this year, that is, the rent was reduced by 33.3%. However, due to the fact that the shop business was not as good as expected, and the lease was still closed in the past two years, the shop was hired earlier. As the property is a rare all-storey shop and is located opposite the Times Square, it has certain advertising benefits. Since then, it has received many merchants’ enquiries. It is understood that the watch brands are actively negotiating, and the lease is expected to be implemented in the short term. The market estimates that the latest rent is about 3.5 million yuan, and the rent is about 438 yuan, which is 4 million yuan lower than the highest level, with a range of 53.3%.