Hong Kong Warehouse Vacancy Reaches Record High
A recent report by CBRE revealed that the leasing momentum in Hong Kong's industrial sector remained subdued due to ongoing global trade uncertainty.
This led to landlords lowering rents, as occupiers proceeded with caution. The leasing volume reached 1.8 million sq. ft year-to-date, representing just 55% of the full-year volume for 2024.
- Warehouse vacancy increased by 1.4 percentage points quarter-over-quarter to 11.8%, a record high.
- Tenants continued to implement cost-saving strategies, contributing to the rise in vacancy.
- Mounting vacancy pressure prompted landlords to lower rents to remain competitive.
Overall warehouse rents continued to decline, falling by 3.7% quarter-over-quarter. This brought the year-to-date decline to 6.5% and the drop from the peak achieved in Q4 2023 to 10.9%.
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Author's summary: Hong Kong's warehouse vacancy hits a record 11.8% in Q3.