Old grade-B office space loses appeal
More companies are relocating from ageing grade-B office buildings to industrial-office premises to cut rental expenses, Hang Lung Development's property manager Wellman Wong Wai-man said.
Mr Wong said Government policy allowing industrial-related companies to use industrial-office buildings for office purposes had boosted market activity.
Rents of grade B offices were about $20 a square foot, considerably higher than industrial-office buildings, he said at the company's launch of its new industrial-office property in Cheung Sha Wan.
Monthly rental at Wing Hong Street, for example, is $12 to $16 a square foot.