Sun Hung Kai Properties (SHKP) and Henderson Land Development have leased 85 per cent of their joint venture One International Finance Centre above the airport rail terminus in Central. SHKP general manager for leasing, Samson Chu Chung-kai, said the firm was negotiating leases with various potential clients. Office space under negotiation ranged from several thousand square feet to 10,000 sq ft, he said. He expected to achieve an occupancy rate of 90 per cent next month as some discussions had reached the final stage. Average rents were quoted at $40 per square foot. One International Finance Centre has already secured tenancies from international finance companies such as ING Barings and JP Morgan. The newly-completed 38-storey building provides 784,000 sq ft in office space and a three-storey retail podium of 180,000 sq ft. Mr Chu said potential clients were taking advantage of rents which have fallen to a reasonable level to relocate their operations to new Grade A offices. The softened office rental market also attracted overseas companies to set up headquarters in Hong Kong and he expected the office rental market to improve provided supply of Grade A office in Central gradually 'dried up'. Substantial new office supply would not come on the market until the proposed 88-storey Two International Finance Centre and the redevelopment of Swire House.