Office Rents In Prime Central Up

Office Rents In Prime Central Up 0.6% In Q4

HONG KONG – Data from Cushman & Wakefield (C&W) shows that average monthly office rents in Prime Central, which covers 12 major office buildings in the area, edged up by 0.6 percent quarter-on-quarter to HK$113.70 psf in Q4 2021, reported Mingtiandi on Wednesday evening (15 December, SGT).

As for Greater Central, which includes Sheung Wan and Admiralty, average office rents marginally increased by 0.3 percent to HK$97.10 psf on a quarterly basis.

But for the first 11 months of the year, office rents in Greater Central and Prime Central were still down by 4.1 percent and 4.7 percent respectively, said the real estate consultancy.

Still, in a visible sign of a recovery, surrendered office space in Hong Kong reached 367,000 sq ft in Q4 2021, which is nearly half of the peak of 724,000 sq ft that was relinquished by office landlords during the first quarter of the year.

C&W said financial firms and coworking space operators drove the city’s office rental market in H2 2021, and the property consultancy expects those industries to continue to propel the office property market.

Notable office leasing deals during the 2nd half of the year include the 13,900 sq ft upper floor at Hongkong Land’s One Exchange Square that was taken up by Apollo Global Management in October for about HK$120 psf per month.

In Causeway Bay’s Tower 535, coworking space operator IWG rented 2 floors collectively measuring 23,400 sq ft (gross floor area). The workspace is being used by its Spaces brand and was formerly occupied by rival WeWork.

In September, China International Capital Corp agreed to occupy an additional 45,100 sq ft at One International Finance Centre for an in-house expansion there, whereas financial group Amber Hill leased 24,156 sq ft at Two International Finance Centre.

At 28 Stanley Street, The Executive Centre expanded its footprint by renting an additional 47,100 sq ft. In total, the coworking space operator is now leasing the first 25 floors of the building. In Causeway Bay, Compass Offices added 26,500 sq ft of flexible workspaces at Lee Garden 1 & 2.

In July, insurance provider Bupa leased 92,500 sq ft at The Quayside in Kowloon East to consolidate its offices. In June, financial services provider Citadel occupied 23,960 sq ft at Two International Finance Centre, while The Executive Centre took up 15,700 sq ft in AIA Central in Central.

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