Leasing activity for high street shops remained slow. Weaker retail sales continued to curb expansionary demand from retailers, particularly from top-tier brands
Landlords are more flexible towards rents
Industrial Market - Slower Leasing Activity Except for Self-storage*
Weaker demand from the retail sector dragged down leasing demand with vacancy for prime warehouse space edged up 0.3 percentage points to 2.8% in Q2 2015
Rents for warehouse edged down 0.3% q-o-q, the first drop in over 3-years.
Self-storage operators continued to be active with strong space take-up in lower rental cost buildings
Small lump sum, strata industrial sales remain active in Kwun Tong, Aberdeen and Cheung Sha Wan.
En-bloc buildings continue to be sought after for self-use and potential revitalization
*Figures here are preliminary and may be subject to change in the final report.
The full set of CBRE Hong Kong Q2, 2015 MarketViews will be available in mid-July.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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