While pharma firms hunt for more laboratory space.
Subdued trade activity coupled with disappointing retail market performance combined to hinder leasing demand for logistics properties in Hong Kong over the course of 2016, according to CBRE.
CBRE added that whilst cost-saving has been a key theme with warehouse occupiers, certain trades were actively looking for expansion, including car dealers looking for workshops, the F&B sector looking for central kitchens and pharmaceutical companies looking for laboratory space.
In 2017, Hong Kong’s trade flows will remain low in the near-term. “Expansion demand from both third-party logistics providers and retailers is expected to be thin, but new set-ups and expansion requirements from emerging industries such as datacenters as well as testing and certification companies are set to contribute to a greater share of overall leasing demand for industrial properties,” said Samuel Lai, Senior Director, Advisory & Transaction Services – Industrial, CBRE Hong Kong.
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