Prosperity Place rentals reach 19.7%

It’s higher than current rental revisions.

Benefiting from the government’s industrial building revitalization scheme, Barclays said Prosperity REIT converted the use of Prosperity Place in Kwun Tong from industrial/office use to commercial use, which allowed Prosperity bring in commercial tenants.

So far, Prosperity has rented 19.7% of the space (low-zone floors) in Prosperity Place to commercial tenants such as restaurants, education centres and fashion brands.

Here’s more from Barclays:

Currently, rental revisions for office tenants are around 10-15%. Positively, commercial tenants could bring an additional 15% rental revision. Prosperity aims to raise commercial tenants to around one-third of Prosperity Place and the company is studying the possibilities of conversion of other industrial/office buildings in their portfolio, such as Trendy Centre in Lai Chi Kok.

Prosperity REIT remains positive on Kowloon East’s outlook despite more new office supply to come.

With most new supply being strata-title buildings, it does not see increasing competition as tenants prefer to rent space from single-landlord buildings.