In the commercial market, companies have shortened the number of office leases
A large chain coffee shop originally pre-leased the mid-level floor of Phase 5 of Kwun Tong’s Millennium City for a period of six years. However, the lease has been suspended in recent months and a supplementary agreement has been signed to reduce the lease term to three years.
The fifth phase of the City of Genesis won a large chain of coffee shops, renting office floors for more than $1.4 million per month
According to the Land Registry, the coffee chain group pre-leased the above floor in September last year. The lease period was from January 2002 to January 2002. The rent-free period was two months and then the right to Renewed rent for three years to early January 2008. However, the latest change of tenancy period, from the beginning of November this year to the beginning of January 2002, the rent-free period remains unchanged, and there are still three-year renewal rights. It is understood that the above-mentioned rental covers an area of about 35,000 square feet and the monthly rent is maintained at over $1.4 million.
The rent reduction situation in East Kowloon has become more serious. According to the news, the upper level of the high-rise building of the Kwun Tong Acer Capital Building covers an area of about 12,200 square feet and enjoys a full sea view. In July last year, it was rented up to about 32 yuan per party. As the flat has not been leased, it has recently been reduced to about $20 per square. The accumulated decline is about 37.5%, which is a serious case of renting in recent months.
In the same area, Wan Zhaofeng Center, a middle-level unit that is renting, has an area of about 2,200 square meters. The intentional rent is reduced from 26 yuan at the beginning of the year to 20 yuan, a decrease of about 23%.
Bank of America Center rent price cut 35%
Luo Zhongying of Midland Commercial believes that many large enterprises had intended to expand in the above-mentioned new business districts. However, the current economic environment has deteriorated. The deployments set up earlier have changed and even put aside the relevant plans. He estimates that in the future, there will be a number of rental cancellations for more than 20,000 square feet or more of commercial buildings, and more rent reductions will occur in various districts.
In fact, the office market in the core area of Hong Kong Island, where the vacancy rate is extremely low, is also down. Lin Zehao, the Central Plains Office of the Office of the Central Plains, said that the Admiralty Mark A-level commercial building, Bank of America Center, Room 57, Room 57, was rented, with an area of about 1,023 square meters, an intention to rent about 75 yuan, and a monthly rent of about 76,000 yuan. It is reported that the original asking price of the unit was as high as 117 yuan per square meter, but the latest has been significantly reduced by about 35%.
Mr. Lin said that the unit owner is full of confidence in the prospects of office space in Hong Kong, but understands that Hong Kong’s business environment is facing major challenges in the near future, so it has taken the initiative to lower the rent, and it has to tide over the difficulties with tenants.