Hong Kong Industrial Sales and Leasing

Housing Investment Consultancy
Industrial Sales and Leasing Briefing

July 2018

New demand from emerging sectors as well as displacement demand from the redevelopment of older buildings continued to support the warehouse leasing market, but new supply and a possible US-China trade war may weaken rental prospects in the near term.

The sales market was again active, with two of the largest deals related to the growing appetite for data centres.

Leasing activity in the traditional warehouse segment was driven by tenants moving from older industrial buildings as well as displacement demand from the redevelopment of older buildings.

The modern warehouse segment saw declining leasing volumes mainly due to a lack of available space.

The sales of two prime logistics sites at HKIA and Tuen Mun for premium prices reflected developer/operator confidence in the long-term market prospects.

The sales market is expected to remain robust with conversion and redevelopment driving deal flow through the second half.

The business prospects for traditional warehouse users such as 3PLs and retailers are less certain with the possibility of a trade war looming between the US and China.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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