Grade-A office vacancy rate rises to 12.3% in February

The increase was partly due to the completion of S22 in Wong Chuk Hang.

Whilst the office market recorded a positive net absorption of 16,900 sq ft in February, the vacancy rate continued to rise.

Data from JLL showed that Grade A office vacancy rate rose to 12.3% in February.

Amongst submarkets, Central and Hong Kong East saw increases in vacancy, rising to 9.0% and 11.1%, respectively.
JLL said the completion of S22 by Empire Group in Wong Chuk Hang partly drove the increase in Grade A office vacancy for the month. 

Meanwhile, rental growth dropped in February by 0.7% MoM. 

Amongst major office submarkets, rentals in Central and Wanchai / Causeway Bay dropped by 0.8% and 1.2%, respectively, while Tsimshatsui's rent remained flat. 

As of February 2023, the average monthly rent for offices in Hong Kong was $54.8 per square foot.