Hong Kong's industrial real estate market heavily dependent on regional retailers

As they're unscathed by sluggish retail sales.

It has been noted that in the industrial market of the real estate sector in Hong Kong, rents are supported by regional retailers.

According to a research note from CBRE, this is as they face less impact from the sluggish retail sales in Hong Kong.

Meanwhile, the report said mid-range retailers remained as a demand driver in the leasing market as some expanded their logistics operations.

The report also mentioned that warehouse rents edged up 0.9% q-o-q in Q3 2015. Further, the average vacancy of warehouses in Q3 2015 fell by 0.2 percentage points from the previous quarter to 2.6%.
 

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