Foreign firms relocate their Hong Kong offices to outer suburbs as mainland companies take over Central
JLL says mainland companies flocking to ‘trophy buildings’ in Central, with foreign companies being forced out as a result
As mainland companies continue to swoop on trophy buildings in Hong Kong’s Central district, foreign multinationals are relocating their Hong Kong offices to outer suburbs.
According to new findings from real estate services firm JLL, the total number of new lettings in Central is down 47 per cent month-on-month with rents edging up 0.5 per cent month-on-month.
Andrew Yates, head of tenant representation in JLL’s markets department, said Chinese occupiers are coming into Central in droves.
“They very much like the trophy buildings and rental price points are at record high levels. That has led to multinationals to look at other places, which can help mitigate their costs,” he said.
This so-called “decentralisation” by foreign firms has dominated the office market in the first quarter, the JLL report said, and the prime office market is far from losing steam anytime soon.
It names the latest mainland arrivals as CMB International Capital Corporation, which is leasing 30,000 sq ft at Three Garden Road, and Bank of Communications, which has taken a lease for 10,100 sq ft at the Man Yee Building to accommodate their expansion plans.