While landlords at high-end retail shops face immense pressure to secure tenants, leasing for the lower end of the sector is finding support, Vigers Hong Kong deputy managing director Albert Chan Kar-chai says.
The high-end retail market was suffering as a result of the downturn, and new shopping centres targeting upmarket tenants would find it difficult to fill space, Mr Chan said.
Some landlords would be forced to resort to leasing space to lower-end tenants such as supermarkets, which occupied large floor areas, he said.
Lower-end tenants had shown resilience despite the negative market sentiment. Supermarkets, fast-food operators and restaurants were among the keenest to lease space.
Some restaurant operators were taking advantage of the market to expand outlets, he said.
Shops in the established area of Mongkok and shopping centres in densely populated housing estates remained popular, he said.
In the office sector, competition was intensifying between landlords, as new buildings offered generous terms to attract tenants and existing buildings struggled to retain clients.
