Grade A office rents vacancy rates down 0.2% to 9.4% for January
This continues a four-month streak of positive net absorption.
The Grade A office rents showed improvements for four consecutive months now after it posted a 0.2% decrease in overall vacancy rate to 9.4% for January.
"Despite working arrangements now reverting back to appropriate responses to the current increase in infections in Hong Kong, the effect on the office market will be less than that during the initial impact felt in 2020. We believe office demand will continue its improved trajectory after the pandemic situation stabilises,” explained Alex Barnes, Head of Agency Leasing, JLL Hong Kong.
Net absorption of 647,100 sq. ft. was recorded, with tenants continuing to look for quality office spaces. Supporting this performance was a major transaction involving FedEx, which leased 40,600 sq. ft. at Landmark East in Kwun Tong.
Three sectors recorded decreases in the same period, with Central, Causeway Bay, and Kowloon East recording vacancy rates of 7.7%, 9.3%, and 12.4%, respectively.
On the other hand, Tsihamshatsui recorded increases in vacancy rates at 10.4%, whilst Hong Kong East kept a 7.5% occupancy rate from the previous month.
"Industrial leasing and investment markets remained active in January. Fuelled by the rebound of merchandise trade, many logistics players are searching for additional space to capture the gain,” commented Nelson Wong, Head of Research, JLL, Greater China.