Hong Kong developers take to wining and dining office tenants, step up restaurant and bar openings
- Most Hong Kong developers are expanding their F&B offerings to better serve and retain tenants amid a rise in vacancy rates
- We see a growing demand for lifestyle spaces among office tenants, Hysan executive says
Hong Kong property developers and landlords are welcoming more restaurants and bars to their office buildings, as they look to offer more entertainment options to their tenants in an otherwise soft office market.
More than five new food and beverage (F&B) outlets are set to open in and around Taikoo Place this year, for instance. These include trendy Australian seafood restaurant Catch, boutique cafe HAVN, Lady M, which is famous for its cakes, and Japanese hand rolled sushi and sake bar TMK.
Most Hong Kong developers are putting more effort into expanding their F&B offerings to better serve and retain tenants amid a rise in vacant spaces in their office buildings. The vacancy rate for grade A offices rose to 7.9 per cent in Central in April, 12.4 per cent in Wan Chai and 7.5 per cent in Causeway Bay, according to Knight Frank.
“Office tenants nowadays are, in general, more demanding, while landlords would like to enhance the image of their building and provide extra amenities to tenants,” said Oliver Tong, head of retail at JLL in Hong Kong.
Hysan Development, the biggest landlord in Causeway Bay, will feature alfresco dining among other F&B options in a new grade A office tower it hopes to unveil in the district by 2026-27. “We see a growing demand for lifestyle spaces among our office tenants,” said Ricky Lui, Hysan’s chief operating officer.
“It has become slightly more apparent recently that we are seeing F&B elements not just in the basements and lobbies, but also on rooftops, floors with balconies … We have had some discussions with various landlords on this,” said Ada Fung, head of advisory and transaction services, office services, at CBRE.
“F&B operators, they are always up for unique locations. So rooftops and balcony floors are always interesting options for them,” she added.