Hong Kong Industrial Sales and Leasing

Housing Investment Consultancy
Industrial Sales and Leasing Briefing

May 2018

The warehouse leasing market has remained active with many large logistics operators in expansion mode. US-China trade issues now pose the largest near-term threat to the recovering segment.

The robust investment sentiment continued into the first quarter of 2018, with several en-bloc transactions taking place, all with an eye to redevelopment.

The warehouse leasing market has remained active as many high-end, fast-moving logistics operators are again in expansion mode.

The general warehouse segment continued to benefit from the displacement demand of tenants fleeing from buildings earmarked for redevelopment.

The tender for the Kwo Lo Wan logistics site at the airport closed with a satisfactory response, while another tender for the logistics site at Area 49 Tuen Mun should attract keen market interest.

Looking ahead, an increase in leasing activity should prompt landlords to raise asking rents, indicating a recovery in warehousing and logistics after a period of subdued sentiment.

The sales market looks set to continue to flourish with developers and investors dusting off plans to redevelop industrial premises in areas with commercial / residential potential.

 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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