Office splits as Central tightens and decentralised rents stall

Space availability in Central tightened in Q3 2026, according to CBRE.

The Hong Kong office market is set to remain divergent, with rents and vacancies both expected to rise over the next six months, according to CBRE research.

CBRE urged tenants in core markets with upcoming lease expiries to negotiate early as landlords raise rents. Tenants in decentralised markets, on the other hand, should use favourable conditions to relocate or upgrade.

The firm also advised owners of older core buildings to keep rents realistic instead of matching new assets, whilst landlords in decentralised markets should raise occupancy by securing long-term commitments through attractive terms.

Space availability in the Central district tightened in the third quarter of 2026, with vacancy falling to single digits driven by demand from the financial sector for prime buildings.

Leasing in Tsim Sha Tsui West proved robust, with whole-floor commitments prompted by flight-to-quality relocations.

However, cautious demand from non-financial firms in decentralised markets has left rents and occupancy diverging from those in core markets.