While vacancy expected to remain extremely low.
It has been noted that in 2016, a total of 1.9 million sq. ft. of Grade A office space is due for completion.
According to a release from CBRE, further, vacancy is expected to remain extremely low across the major submarkets.
The year will also see competition for vacant space remain high.
Here's more from CBRE:
Chinese financial institutions entering Hong Kong will continue to opt for space in prestigious buildings at premium rents, but landlords may become more cautious toward potential tenants without a strong reputation. In contrast, established Chinese companies are looking for more cost effective spaces.
Multinational corporations will continue to eye consolidation or decentralization opportunities. The demolition of Warwick House in Quarry Bay will continue to generate relocation demand. Tenants forced to leave will likely either stay in Hong Kong East or relocate to Kowloon East.
Rents in Central are expected to outperform, with growth projected at 5%-10% for 2016. Other submarkets are expected to see up to 5.0% growth.
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