Hong Kong’s commercial landlords ‘make noise’ with pop-ups, battle to not be forgotten as long-term tenancies dwindle
- V-Point building in Causeway Bay is planning an event that will bring together eight to 10 streetwear brands and collectors next month, after the success of a similar event in November last year
- Pop-ups ‘better than being vacant’, says Oliver Tong, head of retail at JLL
Commercial landlords in Hong Kong are allotting more space and leases for pop-up events in an effort to diversify their tenant mix and to keep foot traffic going at a time of much reduced retail spending in the city.
“In about five weeks, those retailers recorded six-digit sales. Meanwhile, the pop-up helped us attract more spenders and create a bustling atmosphere,” said Timothy Li, partner and chief operating officer at Qi Feng.
As opposed to traditional leases, which usually require longer term contracts that range from two years to five years, pop-ups only require retailers to pay a fixed rent for a couple of months. The facilities fees can also be split among the retailers that take part in such events.
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Before the protests in 2019, occupancy in such buildings could reach 95 per cent and monthly rents could reach about HK$60 (US$7.74) per square foot. Rents have since fallen by 30 to 40 per cent. In Causeway Bay, the rate was less than HK$40 per square foot as of September last year, commercial brokerage Midland IC&I’s latest data shows.