甲廈新需求疲弱，而大手租務僅屬搬遷。今年入伙的太古坊二座錄得大手成交，中信銀行 (國際) 租用物業6層逾13萬呎樓面，為疫後港島區最大手甲廈租務，該銀行原租用同區太古地產 (01972) 旗下德宏大廈，是次搬遷可提升寫字樓級數，呎租料約50元。
太古地產早年啟動太古坊重建計劃，一座已於2018年入伙，而康和大廈及和域大廈，重建為總樓面面積約100萬平方呎的「太古坊二座」，預計今年中入伙。據悉，現時大廈預租率逾半，除了中信銀行外，另一大租客為瑞士私人銀行寶盛集團 (Julius Baer Group Ltd)，租用物業4層共約9.18萬平方呎樓面，呎租約50元。該集團原租用中環交易廣場等，搬遷可大幅節省租金開支。
同區屢錄縮減業務個案，消息指，觀塘宏利廣場 (前稱國際貿易中心) 3.6萬平方呎樓面，以每平方呎約30餘元租出。據悉，新租客為船務公司，原租用同區建生廣場約4.3萬平方呎，是次搬遷縮減7,000呎單位。此外，較早前旺角新世紀廣場全層2.6萬平方呎樓面，獲電子品牌樂聲牌租用，品牌亦大幅縮減逾萬呎樓面。
US law firm Dorsey & Whitney joins peer in relocating to Hong Kong’s Central business district amid falling rents
Dorsey & Whitney has taken up 3,500 sq ft of space at Alexandra House in Central
Office rents in Central are currently a third lower at HK$116 (US$14.8) per square foot compared with the peak of HK$170 in 2019
International law firm Dorsey & Whitney relocated on Wednesday to a 3,500 sq ft prime office space in Hong Kong’s main business district of Central, making it the latest law firm to take advantage of an office glut.
Such moves have offered some relief to office landlords in the city, who have been struggling as overall office vacancy rates remained stubbornly high at 9.4 per cent in March and April, according to a property agency.
Dorsey’s office used to be in Pacific Place in the neighbouring district of Admiralty, where it stayed for more than two decades. It employs about 20 legal professionals in Hong Kong. The new office is in Alexandra House, a Hongkong Land property with 37 floors of office space above a retail podium called Landmark Alexandra that houses luxury brands such as Dolce & Gabbana, Prada, Saint Laurent and Tory Burch.
“Our new home in Hong Kong brings us much closer to our clients in the heart of Central,” said Simon Chan, head of Dorsey’s Hong Kong office. “Moving to this prestigious location and more efficiently using our space were two of the driving factors in our move.”
The move puts the firm within walking distance of clients, the stock exchange, banks, financial institutions, conglomerates, family offices, and local law firms that it serves and collaborates with, Chan said.
The 110-year-old Minneapolis-headquartered law firm opened its Hong Kong office in 1995. It has 20 locations across the US, Canada, Europe and Asia-Pacific.
The Hong Kong office has served as crucial connector both into Asia and from Asia to the US and the rest of the world. It provides services such as dispute resolution and assistance for cross-border mergers and acquisitions, corporate finance and international capital markets transactions.
“Our team in Hong Kong is committed to the highest quality service to clients, and our new location is one more way that we invest in that commitment,” said Dorsey managing partner Bill Stoeri.
Dorsey’s relocation follows that of New York-headquartered White & Case, which opened in April a 25,000 sq ft office across three floors at York House, Central, also owned by Hongkong Land.
“We have seen a trend of well-performing businesses looking to move to Central or relocate within Central” due to the upgrade in quality, said Neil Anderson, director and head of office, commercial property at Hongkong. “Recent leasing activity in Central underlines its continuing resilience and value at the nexus of the capital markets and business community in Hong Kong.”
The average prime office rent in Central currently stands at HK$116 (US$14.8) per square foot, nearly 32 per cent lower than the peak of HK$170 in 2019, according to a property agent. Overall prime office rents in Hong Kong have fallen by more than a quarter to HK$53 per square foot.
“We do see multinational companies relocating within or to Central, or upgrading their space to higher-quality buildings in various sub-markets,” the agent said. “The reasons are rental savings, better specifications of buildings and other long-term business strategies.”
The office property market would have been more active if Hong Kong had not been hit hard by the fifth wave of the pandemic, according to another property agency.
“Landlords are beginning to speak to occupiers about potential early lease renewals to retain existing tenants,” agent said.
The agency which had originally anticipated a slight recovery of around 1 per cent for the year, now expects overall Hong Kong and CBD grade A office rents to correct by 5 per cent.
Another agency however, expects office rents to trend higher. Rents in Central could rise between 5 and 10 per cent, and overall Hong Kong office rents by as much as 5 per cent, agent said.
(South China Morning Post)
For more information of Office for Lease at Alexandra House please visit: Office for Lease at Alexandra House
For more information of Office for Lease at York House please visit: Office for Lease at York House
For more information of Grade A Office for Lease in Central please visit: Grade A Office for Lease in Central
For more information of Office for Lease at Pacific Place please visit: Office for Lease at Pacific Place
For more information of Grade A Office for Lease in Admiralty please visit: Grade A Office for Lease in Admiralty
Henderson Land says John Lee’s pledge to speed up housing and land supply will benefit homebuyers, the government and developers
Co-chairman Peter Lee says developer will help Hong Kong’s next leader with scheme to provide training and mentoring to 1,000 junior secondary school students living in subdivided flats
We believe that the demand in the second half will be strong, co-chairman Martin Lee says
Henderson Land Development, which was founded by Lee Shau-kee, Hong Kong’s second-richest man, said it expected that a pledge by John Lee Ka-chiu, Hong Kong’s next leader, to speed up housing and land supply would benefit homebuyers, the government as well as developers.
“We agree that Hong Kong should boost the supply of land in both quantity and quality, as mentioned by chief executive-elect John Lee,” Martin Lee Ka-shing, Henderson Land’s co-chairman and Lee Shau-kee’s younger son, said at an annual general meeting held on Wednesday.
Peter Lee Ka-kit, Henderson Land’s other co-chairman and the founder’s elder son, said that Henderson Land would help John Lee complete his pilot scheme and help 1,000 junior secondary school students living in subdivided flats with training and mentoring programmes. “The scheme will offer 1,000 children a better future and help to narrow the gap between the rich and the poor,” he said.
Henderson Land is betting on a recovery in Hong Kong’s housing market in the second half of this year, as the city’s Covid-19 outbreak is brought under control. “Social distancing controls have been relaxed, and we believe that the demand in the second half will be strong,” Martin Lee said, adding that the company was planning to roll out the 2,800-unit Baker Circle project in Hung Hom.
Baker Circle is expected to be put onto the market for sales this month at the earliest, and is one of the biggest urban residential redevelopment projects by a private developer in Hong Kong.
Henderson Land has spent more than 20 years and billions of dollars on property acquisitions for Baker Circle, which will have a total gross floor area of about 1 million sq ft. It will include an almost 1 kilometre long pedestrian street inspired by Coal Drops Yard, a shopping area near King’s Cross in London.
On the mainland, Peter Lee said that due to the recent lockdown in Shanghai, projects in the city had been delayed by about half a year. “Most of the places have reopened today and our work can be resumed. We will try to catch up in the second half,” he said.
Shanghai ended its two-month-long citywide lockdown on Wednesday, allowing 2.67 million businesses to resume operations.
Henderson Land has six commercial properties for leasing, including offices and shopping centres, in Shanghai. Its commercial complex Lumina Shanghai in Xuhui Riverside District is currently under construction and is expected to be launched this year.
(South China Morning Post)
11,292-home plan for Yuen Long rejected
Sun Hung Kai Properties (0016) and Hongkong Land's 2019 application for an 11,292-flat project in Shek Wu Wai in Yuen Long was rejected by Town Planning Board yesterday.
The project is located at San Tin/Lok Ma Chau and the future development of the area has not yet been formulated, therefore the rezoning application was not supported, the board said. The developers said they were aware of the TPB's decision and that they had submitted another rezoning application earlier in May this year, which would be more in line with the government's latest planning and development framework.