Hong Kong retail demand spurs office conversions
Office space being reconfigured in some key properties to cater for customer needs and to take advantage of the higher rents
Strong demand for retail space from the services industry and higher rents have encouraged Wharf (Holdings) to convert some office floors at Harbour City in Tsim Sha Tsui to semi-retail use.
The office floors, each of about 18,000 square feet, were leased to trading, sourcing, and electronic companies, property agents said. When converted, the space will be used by retailers including spa and beauty centres.
The Bazaar, an outlet for clearance sales by local and international brands, has opened on the 5th floor of the Wharf T&T Centre.
Wharf (Holdings) was unavailable for comment yesterday.
Helen Mak Hoi-lun, senior director of retail services at Colliers International, said the conversions mainly involved older buildings.
"They have a lower floor-to-ceiling height and don't have raised floors. So the facilities they offer are less competitive in the market compared with new office buildings," she said.