The average rent of the local commercial building is 111 vacancy rate 0.6%
Landmark, which is known as the “Central Landlord", currently holds nearly 5 million cubic feet of property in Central. Zhou Mingzu, executive director of Land Company, said in an interview that as of the end of June this year, the vacancy rate of its office buildings was only 0.6%, lower than The overall vacancy rate of 1.5% to 1.6% in the district, the average rent of 111 yuan, due to the tenant’s demand for the region is still very strong, coupled with the supply has been very small, I believe that the rent can still maintain growth. At present, 40% of tenants are financial institutions, 30% are law firms and accounting service companies, and many tenants report that they hope to rent a larger area.
Central can open more than a dozen meetings a day.
The redevelopment of the Hutchison Building in Central and the Murray Road car park project will bring new supply in the future. Zhou Mingzu believes that the increase in supply in Central is a good thing to attract new companies and people into the area. As the company has maintained a long-term relationship with tenants, the ten largest tenants have leases ranging from 5 to 10 years. Some regular customers have leased their properties for 30 years and 40 years. The lawyer building Mayer Brown started earlier than 1964. Renting a property is not worried about the increase in supply and competition.
Zhou Mingzu stressed that in the current market conditions and economic environment, there is still confidence in the rent of office buildings in Central. In the past 18 months, 90% of tenants have signed new contracts. Tenants who have not renewed their contracts have their own reasons, such as Buying office buildings on your own or you need to rent a larger area.
The tight supply of office buildings in Central and the increase in rents have led to the relocation of companies to non-core commercial areas such as Causeway Bay and Quarry Bay. Zhou Mingzu believes that the supply of central office buildings is in short supply. The demand for diversion is a normal result. It is beneficial to the development of Hong Kong, but Central has its irreplaceable The advantages of finance, lawyers and accounting are located in Central, which is the most efficient. “You can open a dozen meetings a day, burying traffic time, and the phenomenon of New York and London."
Strictly choose the strength of customers, do not value the scale
The city’s HNA Group plans to abandon the 8th floor of the 4th to 31st floor of Phase 3 of the Central Exchange Square, which is owned by the market. Market sources acknowledge that China Merchants Securities will rent 4 floors. Zhou Mingzu said that the news was only a market rumor. HNA still rented the relevant floor. The contract period has been several years, and no other information can be disclosed.
Zhou Mingzu believes that the Central location is superior, in line with the business needs of tenants, and also beneficial to tenants to retain employees. The Land Company is not only the owner, but also positions itself as a community manager. I was asked if a tenant with poor reputation would be dissatisfied with other tenants. He said that he would not focus on the size of the tenant, but would rent the office building depending on the strength of the tenant. Customers can enter.