Hong Kong office landlords in ‘defensive’ mode amid supply glut, relocation trend
Hong Kong office landlords are facing increasing pressure due to a supply glut, leading tenants to upgrade to better locations and facilities. This "flight to quality" is forcing landlords into a defensive position, offering incentives to retain tenants or facilitate relocation within their properties.
Approximately 3 million sq ft of new premium office space is expected to enter the market soon, marking the largest net increase in 17 years. This influx of supply is driving downward rental pressure, particularly on grade B and grade A-minus office spaces, with forecasts predicting a 5 to 10 percent decline in rents this year. The "flight to quality" encompasses factors like improved transport connectivity, stronger ESG partnerships, and larger floor plates, as exemplified by law firm Holman Fenwick William's recent move to Alexandra House.
via SCMP Full Text Feed
Hong Kong office landlords are facing increasing pressure due to a supply glut, leading tenants to upgrade to better locations and facilities. This "flight to quality" is forcing landlords into a defensive position, offering incentives to retain tenants or facilitate relocation within their properties.
Approximately 3 million sq ft of new premium office space is expected to enter the market soon, marking the largest net increase in 17 years. This influx of supply is driving downward rental pressure, particularly on grade B and grade A-minus office spaces, with forecasts predicting a 5 to 10 percent decline in rents this year. The "flight to quality" encompasses factors like improved transport connectivity, stronger ESG partnerships, and larger floor plates, as exemplified by law firm Holman Fenwick William's recent move to Alexandra House.
via SCMP Full Text Feed
