April 2018

Hong Kong | Singapore

Office Market Review

Market Movement / Demand Leasing activity emerged from temporary lull

The office leasing market has rediscovered its One Taikoo Place in particular, has attracted Road Central and Amsterdam-based co-work impetus and a positive net take-up towards several large multinational companies looking operator Spaces (part owned by Regus) the end of last year indicates leasing activity to decentralize and major pre-lets here include committing to taking up a substantial part has emerged from a temporary lull, earlier in Simmons and Simmons (One Pacific Place) (approx. 77,000 sq ft) of the newly refurbished the second half of last year. Leasing activity in and Baker MacKenzie (Hutchison House). Sun House. Also, Naked Hub, the Shanghai- the CBD (Sheung Wan, Central/Admiralty/Wan Facebook will also be relocating there from based co-working startup, landed in Hong Chai) is still being led by expansion by PRC nearby One Island East. Kong in the second half of 2017, unveiling financial services (banks, brokers and asset its first centre in the city’s Sheung Wan area managers), either expanding or relocating. One Taikoo Place has attracted several taking up a total of 16 floors at Bonham large multinational companies Circus, providing hot desks, open offices and Many of the new leases in the prime sector are private rooms for over 800 people. In addition, medium size around 3 - 5,000 sq ft and focus Central Property/private equity firm Pengrui Sun Growth Securities has leased a whole on the premium buildings such as International Hong Kong has leased space in Bank of floor at Infinitus Plaza, while China Fortune Finance Centre One and Two IFC, Cheung China Building and so has asset management Financial Group has leased 22,500 sq ft in Kong Center, AIA Central and Exchange company China Sichuan International Cosco Tower. Square. Some of the few larger leasing Investment. The Consulate of Hungary has transactions include Industrial Bank leasing moved into ICBC Tower, Three Garden Road Wan Chai always attracts a variety of 56,000 sq ft in One IFC, China Minsheng Bank from St John’s Building. Tenants moving industries. JS Financial has moved into Capital taking several units in AIA Central and China into St John’s Building include firms such as Centre (fka AXA Centre). MassMutual Tower Huarong Asset Management taking two floors adventure travel company Kayak Asia Pacific has been one of the busiest buildings in this in Bank of China Tower (23,000 sq ft). and Hong Kong Securities of Public Offerings district with The Consulate of The Philippines Systems. Club Lusitano Building has attracted taking up two whole floors. Other new tenants The new schemes just completed (or soon to several new tenants including Ovata Capital here include Gobee.bike.com, human resource be completed) such as Lee Garden Three (fka and Arisaig Partners from The Centre. firm PTGM and Capital Union Investments. Sunning Plaza), Causeway Bay (340,000 sq ft) Co-work operator Garage Society has leased and One Taikoo Place, Quarry Bay (778,000 Sheung Wan has seen increased activity some 16,500 sq ft in Beverly House. sq ft) have attracted strong interest and have from co-working operators with UCommune already achieved over 50% pre-commitment. (fka UR Work) leasing a floor in 181 Queen’s Continued on page 4

Disclaimer The information in this publication should be regarded as a general guide only. Whilst every care is taken in its preparation, no representation is made or responsibility accepted for its accuracy or completeness. The rentals mentioned are neither asking rentals nor rentals agreed by property owners, but only represent the writers views on estimated rentals and is intended as reference only. LKF 29 (Onfem Tower) Full Tesbury Centre Full Lucky Building $41 The Hennessy $38 - $40 Lyndhurst Tower Full The Phoenix Full Asking Rates / April 2018 $118 The Sun’s Group Centre $39 New Henry House Full Times Media Centre Full New World Tower 1 & 2 $79 - $82 Trust Tower $28 Nexxus Building $93 Tung Wai Commercial Building Full Sheung Wan / Central West One / Two Exchange Square $165 - $170 W Square $40 Three Exchange Square $160 $38 - $40 1 Des Voeux Road West $25 One / Two IFC $170 - $230 Yam Tze Commercial Building $25 - $28 69 Jervois Street $30 - $32 On Hing Building $45 - $47 Yue Xiu Building Full 135 Bonham Strand Trade Centre $29.50 Pacific House $65 181 Queens Road Central $45 - $57 Pacific Place One & Two $155+ Causeway Bay 235 Wing Lok Street Trade Centre $22 - $24 Parker House $60 - $62 238 Des Voeux Road Central Full Prince’s Building $135 68 Yee Wo Street $48 299 Queen’s Road Central Full Printing House $74 - $87 Bartlock Centre $38 - $50 Bangkok Bank Building $30 Prosperity Tower $87 - $95 Capitol Centre $38 Beautiful Group Tower $49 - $57 Prosperous Building $45 - $47 Causeway Bay Plaza 1 & 2 $41 - $44 BOC Group Life Assurance Building $40 Regent Centre Full China Taiping Tower 1 & 2 $45 Bonham Circus $43 - $65 Ruttonjee Centre / Dina House $78 - $80 Chinachem Leighton Plaza $32 Bonham Trade Centre $29 - $32 Shanghai Commercial Bank Tower Full Chinaweal Centre $35.75 Central 88 Full Silver Fortune Plaza Full Cigna Tower $33 Centre Mark II $32 - $35 Somptueux Central $48 Cofco Tower (Top Glory) $56 - $58 Chao’s Building $28 Southland Building Full East Exchange Tower $38 China Insurance Group Building Full Shun Ho Tower $40 East Point Centre Full China Merchants Building Full St George’s Building Full Eton Tower $48 Chu Kong Shipping Tower Full St John’s Building Full Guardian House $36 Cosco Tower $65 The Center $75 - $98 Guangdong Tours Centre Full Far East Consortium Building Full The Centrium $52 - $55 Honest Building $34+ FWD Financial Centre $52 - $54 The Chinese Bank Building $40 Full Fu Fai Commercial Centre $30 - $31 The Full Island Beverley Full Golden Centre $55 - $58 The Workstation $37 - $43 Jardine Centre $40 Guangdong Investment Building Full Three Garden Road $128 - $130 Lee Garden One $72 - $85 Hing Yip Commercial Centre Full Two Chinachem Plaza $33 Lee Garden Two $65 Hollywood Centre On Hold Unicorn Trade Centre $39 - $41 Lee Garden Five $58+ Hong Kong Trade Centre Full Universal Trade Centre $37 Lee Garden Six Full Infinitus Plaza $60 United Centre Full Leighton Centre $48 - $50 Ka Wah Bank Centre $35 Wellington Place Full Lippo Leighton Tower $40 Kai Tak Commercial Building $28 - $38 World Wide House $87 - $89 One Hysan Avenue Full Li Po Chun Chambers Full Wheelock House $110+ Park Commercial Centre $33 - $38 Nan Fung Tower Full Wilson House Full Plaza 2000 $48 OfficePlus@Sheung Wan $45 - $53 Wincome Centre Full Sino Plaza $58 - $60 Ovest $36 - $40 Full Soundwill Plaza $53 - $65 Pacific Plaza (Sai Wan) $22 - $25 Winsome House Full Soundwill Plaza II Midtown $48 Shun Tak Centre $65 - $72 Winway Building Full The Goldmark $43 - $45 New York House $35 Wyndham Place $48 Tower 1 & 2 $65 - $78 Teda Building $36 York House $165 - $175 Tower 535 Full Tern Centre 1 & 2 Full Windsor House / Chubb Tower $50 - $52 The L Plaza $32 - $34 Wan Chai World Trade Centre $68 The Pemberton $42 Zoroastrian Building $36 The Wellington Full 3 Lockhart Road $42 - $47 Tung Hip Commercial Centre Full 28 Hennessy Road Full Fortress Hill / North Point V. Heun Building Full 60 Gloucester Road Full Wing On Cheong Building $26 80 Gloucester Road Full 88 Hing Fat Street $35 Wing On Centre $56 - $60 88 Gloucester Road $45 101 King’s Road $32 - $35 Workington Tower $26 88 Lockhart Road Full 148 Electric Road $39 Yardley Commercial Building Full Allied Kajima Building $53 @Convoy Electric Road $38 - $45 BEA Harbour View Centre $50 AT Tower Full Central / Admiralty Beverly House $28 - $30 AIA Tower $54 - $60 CC Wu Building $34 - $35 China United Centre Full 1 Duddell Street $79 Caltex House $27 Citicorp Centre $32 - $40 8 Queen’s Road Central Full Capital Centre $42 Island Place Tower Full 8 Wyndham Street $65 - $69 Centre Point $40 - $44 Jupiter Tower $25 9 Queen’s Road Central Full Central Plaza $80 - $90 KP Tower Full 33 Des Voeux Rd Central Full China Evergrande Centre $55 - $60 K.Wah Centre $31 100 Queen’s Road Central $80 China Hong Kong Tower $29 - $32 Loong Wan Building $24 122 Queen’s Road Central Full China Online Centre $34 - $44 Olympia Plaza $28 - $31 Abdoolally House Full China Overseas Building $45 Parkview Centre $27 Admiralty Centre 1 & 2 Full China Resources Building $72 Sea View Estate Blk A Full Agricultural Bank of China Tower Full Chinachem Century Tower $36 Two Chinachem Exchange Square $21 - $23 AIA Central $165+ Chinachem Johnson $29 Union Park Tower $33 Alexandra House $160 Chung Nam Building Full Asia Standard Tower $50 - $55 CKK Commercial Centre $27 - $28 Quarry Bay / Others Bank of America Tower $95 - $130 CNT Tower Full Bank of China Tower $115 - $145 Convention Plaza Office Tower $90 625 King’s Road $35+ Baskerville House $77 Dominion Centre Full 633 King’s Road Full CCB Tower Full East Town Building $31 - $33 1063 King’s Road $42 - $44 $180 Emperor Group Centre Full AIA Hong Kong Tower Full Central Building Full Everbright Centre $68 Berkshire House $48 Central Tower $120 Fortis Tower Full Cambridge House $50+ Century Square $60+ Generali Tower Full Chinachem Exchange Square $27 - $28 $170 Great Eagle Centre Full 1 - 4 $48 - $50 China Building $87 Guardian House $36 Devon House Full Chinachem Central 1 & 2 Full Harbour Centre $75 - $78 Dorset House $50 Chinachem Tower $40 Harcourt House $45 - $50 Kerry Centre $58 Crawford House $73 - $75 Hopewell Centre $55 - $66 Kodak House 1 & 2 $23 CITIC Tower Full Jubilee Centre $44 Lincoln House Full Chiya Bank Building Full Lucky Centre $30+ Marina House $19 - $21 Chuang’s Tower $65 Luk Kwok Centre $64 One Island East $60 - $68 Club Lusitano Building $68 Mass Mutual Tower $53 - $55 Oxford House $48 - $50 Edinburgh Tower $150 Methodist House $28 - $30 PCCW Tower Full $83 - $98 Neich Tower $36 - $39 Prosperity Millennia Plaza $29+ Euro Trade Centre $65 - $66 One Capital Place $31 - $35 Fairmont House Full Overseas Trust Bank $45 Wang Chuk Hang Far East Finance Centre Full Pico Tower Full Fung House $53 Sang Woo Building $33 - $38 41 Heung Yip Road $23 - $34 Gloucester Tower $145 - $150 Shanghai Industrial Investment Building $32 - $34 AXA Southside $38 Henley Building Full Shui On Centre $58 - $65 $26 Hip Shing Hong Centre Full Sing Ho Finance Building $30 Global Trade Square $25 Hong Kong Diamond Exchange Centre Full Siu On Centre $36 Genisis $19 - $22 Hutchison House $70 - $80 Sun Hung Kai Centre Full One Island South $30 Full $40 - $48 The Factory Full Kinwick Centre Full Sunshine Plaza Full Vertical Square Full LHT Tower $103 Tai Tung Building $37 - $45 Li Dong Building $38 - $42 Tai Yau Building $40 - $45 All rents quoted are asking rental rates and $55 - $78 Tai Yip Building $31 - $34 subject to change without prior notice

Hung Hom Paul Y Centre $23 / Pioneer Place $19 Cheung Kei Centre $46+ Prosperity Centre $20+ Asking Rates / April 2018 Harbourfront Landmark Full Prosperity Place $24 - $26 One & Two Harbourfront $34 - $46 Remington Centre $17+ Peninsula Square $25 The Mark $22 The Metropolis Tower $36 - $42 The Rays $20 Tsim Sha Tsui Two Harbour Square $23 - $28 Kowloon Bay Westin Centre $16+ 8 Observatory Road Full Westley Square $17+ 10 Knutsford $26 - $29 Billion Centre Full 17-19 Ashley Road Full Chevalier Commercial Centre Full Cheung Sha Wan 26 $68 Enterprise Square Tower 1 - 3 $18+ Ashley Nine Full Enterprise Square Two Full 9 Wing Hong Street $19 - $22 Cameron Plaza Full Enterprise Square Three Full 909 Cheung Sha Wan Road $31 - $33 Carnarvon Plaza $42 Enterprise Square Five $30 CEO Tower Full $29 - $38 Exchange Tower $35 $24 - $26 China Insurance Building $26 - $28 Goldin Financial Global Centre $29 - $45 Clifford Centre $24 China Minmetals Tower $36 Hong Kong Pacific Tower $33 - $42 Edward Wong Tower $23+ Chinachem Cameron Centre Full KITEC $21 - $24 Global Gateway Tower $21+ Chinachem Golden Plaza $31 - $32 Kingston Place $32 - $36 Grandion Plaza Full Concordia Plaza $38 - $39 Manhattan Place $33+ King’s Tower Full Empire Centre $45 - $46 OCTA Tower $22 - $30 Laws Commercial Plaza $25 - $26 Energy Plaza $38 One Kowloon Full Peninsula Tower $21+ Hon Kwok Jordan Centre Full Skyline Tower $21+ Saxon Tower $27 - $32 International Commerce Centre $100 Telford House $29 Tins Enterprise Centre $17 - $19 K-11 Atelier $85 - $100 Trade Square $22.50 Lippo Sun Plaza $40 - $45 Kwun Tong Trendy Centre $22 - $23 Tower A $60 Mirror Tower Full 9 Chong Yip Street $22+ New East Ocean Centre Full 78 Hung To Road $36 New Mandarin Plaza $35+ Apec Plaza $19 Ocean Centre $41 - $48 Bamboos Centre $20 New Territories One Peking Full C-Bons International Centre Full Tower 1 & 2 $42 - $43 Crocodile Centre $35 Shatin South Seas Centre Tower 1 & 2 Full EGL Tower Full $36 - $38 Elite Centre Full Delta House $20+ The Gateway Tower 1 & 2 $45 - $60 Fullerton Centre $16+ Towers $35+ The Gateway – Sun Life Full Fun Tower Full Shatin Galleria $18 - $19 The Gateway – Prudential Tower $65 - $68 Futura Plaza $23 The Gateway II Tower 6 $60 - $66 Gravity $22 - $24 Kwai Chung / Tsuen Wan The Peninsula Hotel Office Tower Full Infotech Centre $18 Tsim Sha Tsui Centre $45+ King Palace Plaza Full CITIC Telecom Tower $14+ Wing On Plaza Full Kin Sang Commercial Centre Full (Kolour) City Landmark $34 Yes & Right House $27 KOHO $27 Ever Gain Plaza $18.50 Kwun Tong Harbour Place Full Grand City Plaza $22 - $25 Mongkok / Jordan Kwun Tong View $32 KC100 $28 Legend Tower $25 Kowloon Commerce Centre $31 Austin Plaza Jordan $27 Lu Plaza $19+ $26 - $28 Towers $46 -$49 Landmark East AXA Tower $31+ Manhattan Centre $19 Grand Plaza One & Two $43 - $52 Landmark East – AIA $29 - $36 Tower 1 & 2 $34 - $40 Hollywood Plaza Full Manulife Financial Centre $31 - $38 Millennium Trade Centre $24+ HSH Kowloon Centre Full Mapletree Bay Point $30 - $40 Nina Tower $22 Langham Place $50 MG Tower Full The Octagon $17 - $24 Ocean Building $26 Millennium City 1 – Tower 1 $30 - $35 Omega Plaza $25+ Millennium City Standard Chartered $35 Park-In Commercial Centre $35 - $37 Millennium City 2 $27 - $31 Pioneer Centre $36 - $38 Millennium City 3 Full Prince Edward Lamma Centre $40 Millennium City 5 - BEA $43 Sino Centre Full Millennium City 6 $36 - $38 Skyway House $16 Nanyang Plaza Full Wai Fung Plaza Full One Harbour Square $28 All rents quoted are asking rental rates and Wing On Kowloon Centre $34 - $38 One Pacific Centre $29 - $35 subject to change without prior notice

Rental / Forecasts Top prime rates now ranging from HK$145 to HK$200 psf

Overall prime rates in Central advanced where the better quality buildings average unabated, we foresee rates could advance marginally last quarter by around 1.4% QOQ around $47.00 per sq ft and $32.00 per sq ft around 7% in the Greater Central area and and despite the low vacancy rate that rate of respectively. around 4% overall. The banking and financial growth has slowed. This is because rents are sectors and the TMT sector (Technology / already at record highs, with top prime rates Kowloon East has been surprisingly resilient Media / Telecom) will continue to be the ranging from HK$145 to HK$200 per sq ft per over the past few quarters, given the amount strongest influences on rental growth. month, net effective. Trading initiatives such of supply and remains stable at around $30.00 as the Shanghai – Hong Kong and Shenzen- per sq ft. The main competition to Kowloon Hong Kong Connect Schemes will encourage East is still Island East but because this demand in Central from PRC financial firms. location has comparatively low vacancy rates, Refer and Earn the rental gap continues to be around $20.00 Know Someone Looking The best value for money is still found in per sq ft, making Kowloon East 40% more Island East and Island South competitive. for Office Space?

In general, prime rates in Greater Central The vacancy rates in the three core office Enjoy CASH REWARDS for all successful (CBD) average around $125 per sq ft. This districts (Central/ Admiralty/Sheung Wan) are leads equal to 15% of our commission drops off to around $70 per sq ft average already at record lows and are expected to For more details visit: for the premium buildings in Wan Chai/ tighten still further in 2018. With continued http://www.corporatelocations.com.hk/ Causeway Bay. The best value for money is demand in the Central Business District refer-and-earn still found in Island East and Island South, from PRC financial firm expected to remain Market Movement / Demand cont. 04

Causeway Bay again remains a popular, busy Summary of Large Space Relocations location with co-working operators. Local firm Campfire has leased 9 floors at V-Point (approx. 39,000 sq ft) and this will be their 10th Tenant Building District Approx. Floor Area co-working outlet in Hong Kong. The Desk CWB has leased a floor at Leighton Centre Hong Kong Island and Spaces are opening another facility in Lee China Huarong Management Bank of China Tower Central 23,000 sq ft Garden Three (fka Sunning Plaza). In other Industrial Bank Co. One IFC Central 54,500 sq ft leasing activity Service Now has just opened China Merchants Securities Cosco Tower Sheung Wan 31,000 sq ft an office in Lee Garden One and other recent Spaces Sun House Sheung Wan 77,000 sq ft tenants there include Wisdom Education The Consulate of Philippines MassMutual Tower Wan Chai 16,000 sq ft and Vipshop Holdings. Sinewing Financial Garage Society Beverley House Wan Chai 16,500 sq ft Advisors leased space in Sino Plaza and CCB Campfire V-Point Causeway Bay 39,000 sq ft Frontier Capital has moved into Cofco Tower. Spaces Lee Garden Three Causeway Bay 22,000 sq ft Recent tenants to Hysan Place include China The Desk CWB Leighton Centre Causeway Bay 12,000 sq ft SCE Property Holdings and Siemens. Otsuka BNP Paribas Lincoln House Quarry Bay 110,000 sq ft Pharmaceuticals has just leased a floor in East FTI Consulting Oxford House Quarry Bay TBC Exchange Tower. Bayer Pharmaceuticals Oxford House Quarry Bay TBC WeWork Citiplaza Three Quarry Bay 48,500 sq ft Island East North Point/Quarry Bay still Simmons and Simmons One Taikoo Place Quarry Bay TBC offers superb value for money. One of the Baker McKenzie One Taikoo Place Quarry Bay 109,000 sq ft largest deals in this district is BNP Paribas Facebook One Taikoo Place Quarry Bay 103,500 sq ft leasing some 110,000 sq ft in Lincoln House, CNN 41 Heung Yip Road Wong Chuk Hang 35,000 sq ft Quarry Bay. FTI Consulting is moving into Oxford House relocating from The Center. Kowloon WeWork has secured 48,500 sq ft in Citiplaza VF Corporation Mapletree Bay Point Kwun Tong 107,000 sq ft Three in Taikoo Shing. In North Point, Aurecon Sainsbury’s Mapletree Bay Point Kwun Tong 36,500 sq ft Hong Kong has relocated from Island Place Mott McDonald Mapletree Bay Point Kwun Tong 36,500 sq ft Tower to 169 Electric Road (@Convoy) and WeWork Mapletree Bay Point Kwun Tong 71,500 sq ft Eisai have moved here as well. Recent tenants Naked Hub Two Harbour Square Kwun Tong 56,000 sq ft to move into Citicorp Centre include Scan Lazybug Two Harbour Square Kwun Tong 30,000 sq ft Global Logistics and Rich Plan International. Now TV / PCCW Goldin Financial Global C. Kowloon Bay 93,000 sq ft Bauhina International and Interspace have Otis Elevator Goldin Financial Global C. Kowloon Bay 69,000 sq ft moved into 101 King’s Road. 5.11 Sourcing Goldin Financial Global C. Kowloon Bay 17,800 sq ft

One Taikoo Place Lee Garden Three (previously Sunning Plaza) Goldin Financial Global Centre Quarry Bay 18 Hysan Avenue, Causeway Bay 17 Kai Cheung Road, Kowloon Bay

Building Height 46 Storeys Building Height 25 storeys (offices 20) Building Height 27 storeys Average Floor Plate 30,000 sq ft Average Floor Plate 17,600 sq ft Average Floor Plate 31,500 sq ft Total Building Size 1,020,000 sq ft Total Building Size 467,000 sq ft Total Building Size 852,000 sq ft Target Completion Q4 2018 Completion Q4 2017 Completion Q4 2016 Nearest MTR Quarry Bay Nearest MTR Causeway Bay Nearest MTR Kowloon Bay (shuttle bus) Rental $70.00 per sq ft Rental $75.00 per sq ft Rental $40.00 per sq ft

Supply New schemes for 2018/19 06

The lack of supply in the Central Business The total amount of new space on Hong adding a further 2.3M sq ft of quality stock to District has long been a cause of concern for Kong Island in the next 12 months will be the market. The two largest schemes due for tenants, which in turn has been driving rents around 1.7 Million sq ft. completion in this area in the next 12 months up for the wrong reason i.e. not necessarily are Mapletree Bay Point and The Quayside, phenomenal demand, but simply a lack of any 18 King Wah Road, which has recently been 77 Hoi Bun Road (2019). This will further help alternatives to move to. sold by Henderson Land to China Create to stabilize rates as a whole and may even Capital, has ample new space available, cause rates to soften in the Kowloon area. In The re-development of Murray Road Car Park although the rental rates are looking quite rich. fact, The Quayside has already implemented a in Central / Admiralty by Henderson Land pre-lease of more than 220,000 square feet of will provide much needed relief to the stock Kowloon East will see substantial new supply floor space to JPMorgan Chase. shortage in this location (adding supply by in the next 12 months, with 4 new schemes some 465,000 sq ft), but this is only scheduled for completion in 4 years. The redevelopment of Asian House in Wan Chai by Chinachem, Summary of Office Developments 2018 - 2019 now to be called One Hennessy is the only new office scheme scheduled to come on line Development Location Estimated Size Completion Date in the CBD next 12 months. 2018 In Causeway Bay Lee Garden Three, 340,000 Hong Kong Pacific Tower Kowloon Bay 225,000 Q1 2018 sq ft (fka Sunning Plaza) is scheduled for Mapletree Bay Point Kwun Tong 683,000 Q1 2018 completion in a few months and is already Lee Garden Three Causeway Bay 340,000 Q2 2018 over 50% pre-leased. Swire Developments One Taikoo Place Quarry Bay 779,000 Q4 2018 also have two important office schemes on 8-10 Wong Chuk Hang Rd Wong Chuk Hang 382,000 Q4 2018 Hong Kong Island scheduled for completion later this year, namely One Taikoo Place, 2019 Quarry Bay (779,000 sq ft) and 8-10 Wong One Hennessy Wan Chai 236,000 Q1 2019 Chuk Hang, Island South (382,000 sq ft). The Quayside Kwun Tung 884,000 Q2 2019 8 Bay East Kwun Tong 534,000 Q3 2019

Hong Kong Pacific Tower 18 King Wah Road Mapletree Bay Point 18 Sheung Yuet Road, Kowloon Bay Northpoint / Fortress Hill 384 Kwun Tong Road, Kwun Tong

Building Height 23 Storeys Building Height 26 Storeys Building Height 19 Storeys Average Floor Plate 16,200 sq ft Average Floor Plate 15,000 sq ft Average Floor Plate 36,000 sq ft Total Building Size 340,000 sq ft Total Building Size 300,000 sq ft Total Building Size 683,000 sq ft Target Completion Q4 2017 Completion Q1 2017 Target Completion Q4 2017 Nearest MTR Kowloon Bay Nearest MTR Fortress Hill Nearest MTR Ngau Tau Kok Rental $33 - $42 per sq ft Rental $65.00+ per sq ft Rental $30 - $40 per sq ft Co-working Space – Overview

The proliferation of co-working space space, preferring the flexibility of a co-work location, which goes to show how successful operators is a new facet of the office market environment. Large corporations such this concept really is. This is clearly a major that has never been witnessed before in many as HSBC, Deustche Bank, Softbank and shift in the culture of office leasing globally. established markets, including Hong Kong. Microsoft all use co-working space facilities. It seems that the demand for such space The substantial amount of space these has gone far beyond a passing fad and this WeWork, the world’s leading co-working flexible workplace operations take up, will concept of using office space demonstrates operator, has only just started to make inroads have a significant effect on the occupancy how working lifestyles have changed into the Hong Kong market and what we see rates of many locations. dramatically, often suiting the creative now is just the tip of the iceberg. They are culture of millennials, requiring mobility and already one of the largest single occupiers There are several other major players in connectivity, as well as MNCs needing flexible of office space in London. They have just this market including Regus (operating as workspace solutions. secured a 100,000 sq ft location in Japan, with Spaces), The Executive Centre and local firm Softbank pre-committing to half that space, Campfire. Other operators include Garage It seems that the demand for such space although Softbank do happen to be a majority Society, Naked Hub and UCommune. New has gone far beyond a passing fad shareholder of WeWork. They are planning players in the market include Atlas Workbase to grow their Singapore operations to total who has just leased 47,000 sq ft of office One wonders where all these start-ups are 300,000 sq ft over the next 2 years. space in Tsim Sha Tsui, and Tencent which coming from? They couldn’t all be coming will open its first Makerspace in 2018 to from serviced offices/business centres. Indeed This is clearly a major shift in the culture of accommodate 200 start-ups. not, although a significant number of these office leasing globally users did move from such locations, to save We also expect several developers to get in further costs. Many of the new tenants to Currently in Hong Kong they are only located on the act, with some landlords planning to co-working space are existing members from in Tower 535 in Causeway Bay (their original provide such space directly within their own other co-work locations abroad. office) as well as MassMutual Tower in new schemes. This has been the case in Wanchai and LKF Tower in Central. They have Singapore where most major landlords now Another important source of co-workspace preleased some 71,500 sq ft of office space provide such facilities, either stand alone or as users are the major multi-national companies. in Mapletree Bay Point in Kwun Tong and a JV with experienced operators. With so many Those MNCs who assemble teams for ‘special also just secured two floors (48,500 sq ft) in competing centres in the market one questions projects’ often want to avoid locking into a Cityplaza Three, Taikoo Shing. Their space when saturation point will be reached, but standard 3 year lease in conventional office is usually full within 12 weeks of opening a there is a long way to go before that happens.

6 Reasons to Use Corporate Locations For Your Office Search

1 2 3 4 5 6 Not all agents are Market Knowledge – Trust – Open Appointment – Independent Office Mindset – the same – We offer total Total Coverage We are problem solvers No need to appoint an Specialists We are tenants too transparency exclusive agent, this is We are truly impartial • Many agents rely • Companies rely on us not in your interest. • What would we do in • We introduce all only on Landlord’s to find the solution to • Unbiased towards any your situation? options, disregarding listings, which are their most challenging • Informal preferred particular building or fee incentives, and co- incomplete. requirements. acting status is all we landlord. • All our advice backed broking with third party seek. up with thorough agents is no problem. • Our direct marketing • We deliver answers to • Conflict-free analysis. gives us first-hand tenants needs. • Safeguards that presentation of all • Every opportunity knowledge who is every opportunity can competing schemes. introduced, even those moving out from be introduced by any units owned by your what space before agent. • We specialize in just one current landlord. anyone else. market - Office Space

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