Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Hong Kong Office And Retail Leasing Markets Q3 2022

Rosanna Tang • 06/10/2022
HK Office and Retail Market Report Q3 2022

Hong Kong Office Market Net Absorption Reached 183,000 Sq Ft in Q3

Office Absorption Driven by Pre-Committed Space in Hong Kong East

New “0+3” Quarantine Measure to Help Reignite Business Travel, Although No Immediate Boost to Tourism Activities is Anticipated

Office and retail leasing activities were both relatively quiet in Q3. Overall office market net absorption returned to positive territory on the back of pre-commitments at new projects within the Hong Kong East district. Nevertheless, a rise in the availability rate saw rents trend downward at -2.3% q-o-q in Q3. The local retail market also remained weakened, with total retail sales for January to August 2022 recorded at HK$226.7 billion, down 1.5% y-o-y.
Office Market Key Highlights
  • Positive net absorption in Q3 was mainly driven by lease commitments at new completions in the Hong Kong East submarket
  • The public sector, insurance firms and flex space operators have been more active in driving new leases
  • Approximately 2M sf of space from new completions entered the market in the quarter, lifting the availability rate to 16% and further pressing rents downwards by 2.3% q o q
  • Tenant-favorable market conditions will continue, with landlords becoming more willing to offer incentives and subsidies
  • Interest rate hikes, high inflation, geopolitical concerns and economic uncertainties are likely to curb office demand in Q4
Retail Market Key Highlights
  • High street store vacancy edged down in Q3, led by Hong Kong Island submarkets
  • F&B rents picked up moderately, despite high street rents remaining under pressure in Causeway Bay and Tsimshatsui
  • Athleisure and fashion brands to help support retail demand, with some expansion activities observed
  • Latest “0+3” quarantine policy can help long term growth, but may shift local spending abroad in the near term
  • Retail market could see a more meaningful recovery in 2023 if the quarantine rules are further relaxed

Related Insights

main streets across the world 2023

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.
Dominic Brown • 21/11/2023
Reworking the office
Research • Workplace

REWORKING the Office Asia Pacific

Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.
Anshul Jain • 03/11/2023

Related Stories

Cushman & Wakefield
Confidential Global Banking And Financial Services Client • Technology
Learn More
Existing Facility Refurbishment in Canberra
Existing Facility Refurbishment in Canberra • Government
Learn More


Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All