Tenants jump ship to revitalized buildings from typical Grade A offices

Competition is heating up.

Since the implementation of a series of revitalisation measures a few years back, the market has witnessed a boom in the supply of revitalised commercial buildings in the Kowloon office sector.

According to a release from Colliers International Group Inc., in the past few years, the development of CBD2 which resulted in improved transportation network, together with the industrial revitalisation have encouraged the market to look into districts of such in different parts of Kowloon.

These districts are what some may refer to as the ‘rising commercial hubs’ of Kowloon.

Joanne Lee, Senior Manager, Research & Advisory of Colliers International commented that Kwun Tong and Kwai Chung are now fetching similar rent per sq ft for Grade A offices.

“Average rent for both districts is hovering around HK$38 per sq ft although technically both locations are a small distance apart. With improved transportation network and amenities, districts such as Kwai Chung are fast becoming a crowd favourite as one of the stars of Kowloon’s ‘rising commercial hubs’.”

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Sam Li, Director of Kowloon Office Services said, “We have witnessed tenants moving from traditional Grade A office buildings to revitalised buildings. The vacancy rate of these revitalised buildings very much depends on two factors, location and quality.

Offices with easy access to public transport are more popular among occupiers and fetch higher rents. Kwai Chung is a good example where in the past, many would not consider it for their office locations. This is no longer the case as the district has undergone changes with the construction of spanking new Grade A offices as well as high quality revitalised buildings.

Case in hand is KC100 which was previously an industrial building that has been given a new life with its recent revitalisation. Designed with convenience and connectivity, the revitalised building boasts a well thought through layout consisting 12 storeys including nine office and two retail floors. With 25% of space dedicated to retail, tenants will enjoy top-notch entertainment at their doorstep.”

Strategically located close to Kwai Hing MTR Station, KC100 is a linked Grade A commercial / retail complex. Given their prime position in the close cluster of MTR station, tenants at KC100 will also enjoy a vast variety of food and beverage options.

Concurring with Li, Dr Eddy Li, Chairman of Campell Group – the landlord of KC100 - said, “KC100 has been constructed with the best materials currently available. Set to be far more than just another office building, the complex will be a district landmark whose quality is its defining feature.”

Dr Li also shared his long-term plan that goes beyond the standard revitalisation. Plans are in place for setting up an art foundation to incubate local artists and encourage cultural exchange and development by providing a platform to gain public awareness. The lobby of KC100 will be designated to art exhibitions for this purpose. To start off, Dr Li donated HKD1.5 million to support the first year operation.

“With Kowloon West commercial developments’ continued rise in status, KC100 looks set to remain an unsurpassed icon for many years and I’m confident of its future as a premium office premise,” concludes Li.