Highlights of Office Market:
–Â Â Â Â Â Â Rental decline slowing as leasing activity picks up,1-1.5% decline forecast in 4Q
–Â Â Â Â Â Â Positive net absorption of +327,700 sq. ft., first positive take-up since 3Q 2019. Trend expected to continue in 4Q.
–Â Â Â Â Â Â Surrender stock decreased by 12% q-o-q, whilst fitted and subsidized stock remains attractive to cost sensitive tenants
–Â Â Â Â Â Â Finance and Serviced Office sectors continued to lead office leasing recovery
–Â Â Â Â Â Â Availability rate decreased slightly to 13.9%, due to increase in leasing activity. Expected to remain stable in 4Q.4Q transactions expected to centre around new supply pipeline and well-managed office portfolios
–Â Â Â Â Â Â Local demand, mainly with Jewellery & Watches and Fashion & Accessories, drove retail sales up by 8.1% y-o-y, city retail sales expect to maintain momentum, supported by the 2nd disbursement of CVS
–Â Â Â Â Â Â High-street rents increased slightly in 3Q, overall rents set to stabilize in 4Q
–Â Â Â Â Â Â Vacancy rates adjusted downward in general, particularly in Mongkok
–Â Â Â Â Â Â F&B rents improves for two consecutive quarters, backed by new opening of local restaurants and beverage shops, F&B sector will continue to lead retail recovery
HONG KONG SAR –Â Media OutReachÂ – 12 October 2021 – In-line with gradual recovery in the markets, office and retail leasing activity continued to pick up in 3Q 2021. The office market witnessed the first positive net absorption since 3Q 2019 while retail sales are up by 8.1% y-o-y. Office rental decline slowed in the quarter amidst considerable leasing activity in the Finance and Serviced Office sectors, whereas retail rents stayed flat. However, new office supply in decentralized submarkets completing in 2022 will significantly increase availability rates.
www.cushmanwakefield.com.hk or follow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china).