Hong Kong Industrial Sales and Leasing

Housing Investment Consultancy
Industrial Sales and Leasing Briefing

April 2016

The industrial market saw no en-bloc investment deals over the quarter, reflecting a cautious attitude on behalf of both investors and end users. While landlords of modern warehouses are likely to be able to defend rents, older stock may prove more vulnerable to further declines.

Investment activity slowed in Q1/2016 with no en-bloc deals concluded.

The two-speed nature of the warehouse sector meant rising vacancies in the overall market while occupancy in modern warehouses actually increased.

The more sophisticated warehouse landlords were able to minimize possible rental declines by starting leasing campaigns six to nine months before space became available.

New unoccupied supply and backfill space, together with slowing demand, may act as a drag on both warehouse rents and prices over the next three to six months with modern stock much better insulated.

 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Savills Two Exchange Square

+852 2842 4573

 

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