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OfficeShowing the best commercial properties in HongWise Kong January 2015 Visit our website: commercial.savillsproperty.com Hong Kong Helpdesk: Kowloon Helpdesk: 2842 4222 2378 8666 Established in the UK since 1855 D0201_Officewise_R1.indd 1 02/01/2015 8:03 PM MARKETWATCH Rents have move upwards only marginally over the third quarter and we expect little change over Q4. Savills Grade A office rental growth Rents in most districts were flat or rose marginally over Q3. Q3/2014 (%) Q2/2014 (%) The impact of Occupy Central seems to have been limited but may affect business plans if drawn-out further. Central +0.4 -0.6 Lease expiries resulted in some larger tenant relocations but Wanchai/Causeway Bay +0.4 -0.2 take-up of vacated space helped stabilise occupancy rates. Island East +0.0 +1.2 In Tsim Sha Tsui we note significant demand from in-house Tsim Sha Tsui +1.1 -0.1 expansions. Kowloon East +0.0 -0.5 The Shanghai-Hong Kong Stock Connect may result in greater demand for office space from investment and Kowloon West +1.0 -1.0 securities firms. Major new leasing deals, Q3/2014 Market commentary Tenant Building Size (sq ft) In the third quarter, demand for offices came mainly from PRC firms (banks, insurers, asset managers and Clarins AIA Tower 12,900 securities companies) and certain private banks. Despite Melco Crown Cyberport Tower 3 19,200 the presence of the Occupy Central Movement, we have Entertainment noted very little direct impact on the office leasing markets BOC Group Assurance Citiplaza 1 38,600 and rental trends have remained largely on track. Should Fulbright Securities Cosco Tower 20,500 the disruption continue, however, firms may decide to slow or halt expansion plans in response to growing political MetLife International Hopewell Centre 15,600 uncertainties. However, due to the limited availability of The Gateway – Varian Medical Systems 17,600 stock, office rents showed flat or positive growth across all Tower 1 districts, ranging from a quarterly increase of 0% (Kowloon Source: Savills Research & Consultancy East) to 1.1% (Tsim Sha Tsui). Overall, Grade A office rents rose by 0.5% over the period. Besides Central, Wanchai/Causeway Bay is another GRAPH 1 Savills Grade A office rents within Central by district, Q1/2004–Q3/2014 district affected by the Occupy Movement, though only to a slight extent. As only one side of Yee Wo Street Core Central Sheung Wan Admiralty has been blocked, commercial activity in the area has 140 remained more or less unaffected despite some public 120 transport not being available. Rents in the district grew by 0.4% compared with Q2 this year. A similar situation 100 prevailed in Mong Kok, where office rents rose by 0.9% 80 quarter-on-quarter. In Island East and Kowloon East rents 60 are currently stable. Take-up across the market is mostly 40 concentrated on transactions of less than 10,000 sq ft. 20 In Tsim Sha Tsui there was some significant demand 0 Q1 04Q1 Q3 05Q1 Q3 06Q1 Q3 07 Q1 Q3 08Q1 Q3 09Q1 Q3 10 Q1 Q3 11 Q1 Q3 12 Q1 Q3 13 Q1 Q3 14 Q1 Q3 mainly from in-house expansions – for example, Deckers Asia Pacific Ltd leased an approximate 12,000-sq-ft office in The Gateway Tower 6. Rents in Kowloon West grew by We do not see a major decline in demand in Central as a 1.0% during Q3. whole but there is a shift in preference towards Sheung Wan from Admiralty due to the Occupy Movement, Outlook which may narrow the current monthly rental difference of over HK$10 per sq ft. While we foresee some large The Shanghai-Hong Kong Stock Connect which started tenants moving out of particular buildings in Central at in mid-November, as announced by the China Securities the beginning of Q4/2014 due to lease expiries, we are Regulatory Commission and the Hong Kong Securities also witnessing some significant multi-floor take-up which and Futures Commission, will likely improve market will help stabilise vacancy rates. For example, a medical sentiment by generating demand from investment and company and a PRC firm leased two floors and one floor securities firms and reaffirming Hong Kong’s importance of Citibank Plaza respectively. The vacancy rate in Central to China’s capital markets. We expect that office rents in is expected to remain at around 4.5% during the coming occupied areas might soften further in the next quarter quarters, an improvement on the 5.1% recorded at year- while overall rents will remain stable, if the situation does end 2013. Grade A office rents in Central rose by a modest not deteriorate. 0.4% this quarter. D0201_Officewise_R1.indd 2 02/01/2015 8:03 PM HONG KONG – HOT STOCK sole Ovest agent 77, Wing Lok Street, Sheung Wan Executive Suite 2-5 people fully furnished offices with personalized air conditioner Private reception area on each floor Corporate Floor Up to 1,943 sq ft (G) Standard provisions include furniture, telephone, IT connections & complimentary usage of meeting room faciliates 3 Hong Kong helpdesk 2842 4222 search with us commercial.savillsproperty.com D0201_Officewise_R1.indd 3 02/01/2015 8:03 PM HONG KONG – HOT STOCK The Lee Gardens 利園大廈 33 Hysan Avenue Landmark building in Causeway Bay Efficient floor plate High ceiling height In-house car park available Designated vehicle drop-off zone Good alternative location for Central tenants Recently committed by a bank from Central Area: 1,898 sq ft (L) to 15,608 sq ft (L) Rent: from HK$55.00 per sq ft (L) Hong Kong helpdesk 2842 4222 search with us commercial.savillsproperty.com D0201_Officewise_R1.indd 4 02/01/2015 8:03 PM HONG KONG – SOLE AGENT Wing On Centre sole 永安中心 agent 111 Connaght Road Central, Central Harbour view Adjacent to MTR Exit High efficiency In-house car-parking facilities Area : from 1,050 sq ft (G) to 18,740 sq ft (G) Rent: from HK$48.00 per sq ft (G) 5 Hong Kong helpdesk 2842 4222 search with us commercial.savillsproperty.com D0201_Officewise_R1.indd 5 02/01/2015 8:03 PM HONG KONG – LEAD MARKETING AGENT lead Century Square 世紀廣場 marketing agent 1 D’Aguilar Street Located in core Central near Lan Kwai Fong Benefiting from high pedestrian flow Ideal for beauty parlours and high end retailers Fitted Space available Area: from 683 sq ft (G) to 2,956 sq ft (G) Rent: from HK$50.00 per sq ft (G) California Tower lead marketing 30-36 D’Aguilar Street agent Located within Lan Kwai Fong New building High ceiling height Emphasizing work-life balance Area: 5,000 sq ft (G) Rent: Subject to offer Lift 1 2 Lift Lift Service Lift 2 Glass Hong Kong helpdesk 2842 4222 search with us commercial.savillsproperty.com D0201_Officewise_R1.indd 6 02/01/2015 8:03 PM HONG KONG – SHEUNG WAN / CENTRAL Nan Fung Tower 181 Queen’s Road Central 南豐大廈 新紀元廣場 173 Des Voeux Road Central, 181 Queen’s Road Central Central Whole floor available Harbour View High building specifications Close to MTR Exit In-house car-parking facilities Refurbished Lobby Adjacent to MTR station In-house car-parking facilities Area : from 1,803 sq ft (G) Area : from 3,406 sq ft (G) to to 15,541 sq ft (G) 8,940 sq ft (L) Rent: from HK$36.00 per sq ft (G) Rent: from HK$52.00 per sq ft (G) 7 Cosco Tower The Center 中遠大廈 中環中心 183 Queen’s Road Central 99 Queen’s Road Central Harbour view Landmark quality office Adjacent to MTR exit Development in fringe Central Direct lift lobby Open Sea View and City views Immediately available Whole floors available Area : from 1,080 sq ft (G) to 20,946 sq ft (G) Grade “A” specifications Rent: from HK$45.00 per sq ft (G) including full metallic ceiling and raised floor system Area : from 1,595 sq ft (G) to 19,119 sq ft (G) Rent: from HK$55.00 per sq ft (G) Hong Kong helpdesk 2842 4222 search with us commercial.savillsproperty.com D0201_Officewise_R1.indd 7 02/01/2015 8:03 PM HONG KONG – CENTRAL Citibank Plaza 8 Queen’s Road 中環花園道3號 Central 3 Garden Road, Central 皇后大道中8號 High building standard with metallic ceiling and raised 8 Queen’s Road Central, Central floor system Quality office development in Fitted unit available core Central Professionally managed Grade “A” specifications Including full metallic ceiling Consecutive floor available and raised floor system Area: from 909 sq ft (L) to 33,507 sq ft (L) Open greenery view Rent: from HK$85.00 per sq ft (L) Consecutive floors available Minutes away from MTR Station and shopping arcades Area: 1,984 sq ft (L) - 3,012 sq ft (L) Rent: from HK$82.00 per sq ft (L) 9 Queen’s Road Hutchison House Central 和記大廈 皇后大道中9號 10 Harcourt Road, Central 9 Queen’s Road Central Sea view unit available Quality A-Grade Highly efficient floorplate development in core Covered walkway Central location connected to Queensway Covered footbridge Area: from 715 sq ft (G) to connecting to Central 20,293 sq ft (G) footbridge network Rent : from HK$65.00 per sq ft (G) Open city view Area: from 968 sq ft (G) to 7,448 sq ft (G) Rent: HK$65 per sq ft (G) Hong Kong helpdesk 2842 4222 search with us commercial.savillsproperty.com D0501_Officewise_P08.indd 8 15年1月5日 上午11:35 HONG KONG – CENTRAL / ADMIRALTY Far East Finance Lippo Centre Centre 力寶中心 遠東金融中心 89 Queensway, Admiralty 16 Harcourt Road, Admiralty Grade “A” towers stand as Full seaview and open view landmarks on Hong Kong’s Covered walkway conveniently skyline connected to Admiralty MTR Unique and prominent station architectural design Efficient floorplate Building located immediately Area : Approx.