Mid-range brands supported leasing demand for prime warehouse space in 4Q15

As part of their logistic operations relocations.

It has been noted that leasing demand for prime warehouse space was supported by mid-range retailers, amid the retail market's continued slowdown in Q4 2015.

According to a research note from CBRE, this is because they have been less affected by the downturn in retail sales.

The report also noted that in Q4, 13 industrial revitalization applications were received, accounting for one third of total applications for the year. In addition,12 applications are pending approval from the Town Planning Board for industrial conversion.

Here's more from CBRE:

Rents for flatted factories and I/O buildings rose by 1.4% and 1.1% q-o-q; a 4.0% growth for the full year. Throughout 2015, rents for direct-ramp access warehouses declined 2.6% y-o-y, while those for cargo-lift access buildings edged up 1.3%.

Vacancy of cargo-lift access buildings fell 0.4 percentage points to 2.2% in Q4. Investment turnover for industrial assets stood at HK$6.8 billion and 17 transactions worth over US$10 million were reported in Q4.