Causeway Bay East Kowloon Commercial Building
In the first quarter of this year, the rental market for commercial buildings was buoyant. Major rental contracts were recorded in Causeway Bay and East Kowloon. It was reflected that due to the successive launch of the commercial buildings this year, the cost of the relocation of the institutions was justified and the quality was improved.
Hong Kong Feng Center 100,000 28 yuan rent
The commercial market was buoyant and the prices of many buildings in the first half of the year were extremely high. In terms of leasing, the leasing of commercial buildings in the first quarter was extremely active. At least five 50,000 sq. ft. or more rentals were recorded on the market, and most of them were concentrated on the supply of more. East Kowloon. For example, on the 6th floor of the 15th to 20th floors of the Hong Kong HSBC Centre in Kowloon Bay, a total of approximately 100,000 square feet of floor space is rented at approximately 28 yuan per square foot, which is one of the largest commercial rental rentals this year in terms of area of transaction.
According to sources, the new tenant is Fortis Insurance. The insurance company is currently renting a commercial building at the Harbour City in Tsim Sha Tsui. The relocation will save at least half the rent. The Hong Kong Fung Centre was held by the jeans king Liu Hansong. In 2012, he purchased and developed the commercial land at the junction of Chang Yue Road, Hong Tai Road and Hong Yuan Street in Kowloon Bay. The site area was approximately 27,761 square feet and the total floor area was over 339,000 square feet. Completed by the end of the year.
Lee Garden Phase 5, 5th Floor, 60 Yuan, Rented Out
In addition, Two Harbour Square also had major leases. The two floors were on the 16th floor of the property, the entire floor of the 17th and 18th floors, with a total area of approximately 70,000 sq. ft., and the transaction price was approximately RMB 25. The new tenant was Arcadis, a global player. Large-scale projects. The same building also has a shared working space. The naked Hub rents two full floors, with a total floor area of 58,000 sq. ft. and a rent of over RMB 30. It covers two floors of the 25th and 26th floors of the property. It is a top-level feature unit and shares a rooftop advertising board.
As regards Hong Kong Island, the newly completed Phase III of Causeway Bay Lee Gardens recorded a major lease. The property has a total of 5 floors on the 22nd to 27th floors, covering an area of 92,000 sq. ft., which is leased at around RMB 60 per sq. ft., and is the largest gross rental transaction on Hong Kong Island. According to the news, the new tenant is investment bank Goldman Sachs, which is headquartered in the center of the Yangtze River, and the logistics department, including accounting, is located in the center of the same district. Since the Central Center spent 42.0 billion yuan last year, Goldman Sachs also decided to seek local relocation and eventually leased Lee Garden’s three-phase multi-storey for logistical forces. The relocation will also save about 30% of the rent.
According to the analysis, due to the peak supply period of commercial buildings from last year to next year, up to 2 million square feet of new commercial buildings are completed each year, and most of them are located in East Kowloon. As new commercial buildings are introduced, tenants can choose to relocate more, and East Kowloon, Causeway Bay, etc. The rent for commercial buildings is much lower than that in Central District. Therefore, it is suitable for relocating tenants to improve quality and save costs. With the large number of new commercial buildings completed this year and next year, it is expected that the rental activities will be more active than in previous years, and large-hand rental will also increase.