Government renewals dominate industrial leasing as expansion demand stalls in February

Tuen Mun sees lease renewal from Financial Secretary Incorporated.

Industrial leasing activity was marked by government-related renewals as expansion demand stalled, JLL reported. 

Amongst the notable transactions were Financial Secretary Incorporated’se renewal for a 80,363-square-foot space at YKK Building Phase 3 in Tuen Mun, according to a JLL report.

The government also established Hung Shui Kiu Industry Park Company Limited with a $10.0b capital injection to support development of the Hung Shui Kiu and Ha Tsuen modern logistics cluster, with expressions of interest for the first site expected in 2026.

Runze Intelligent Computing Technology Group also entered the Hong Kong market with a $581.0m acquisition of a data centre site in Sandy Ridge, committing $23.8b to the project.

The investment aims to increase the city’s computing capacity 36-fold, the report added.

External trade rose 35.9% in January 2026, driven by double-digit growth in trade with Mainland China, Korea, and Singapore.

Total exports increased 33.8%, whilst imports grew 38.1%. Air freight cargo volume rose 5.5%, though container throughput slipped 3.2%.

The Urban Renewal Authority purchased two units in Newport Centre Phase 1 for $77.7m to support redevelopment.

Other February transactions included the seventh floor of Fook Cheong Building for $31.9m and the third floor of Shing King Industrial Building for $22.2m.