CBRE Publishes the Hong Kong Industrial & Logistics MarketView Q4 2015.
Darren Benson, Executive Director, Industrial & Logistics, Brokerage Services, CBRE Asia commented, “The creative industries are noticeably occupying a larger portion of flatted factory space. The government has added art studios into Column 1 usage for industrial buildings under the Statutory Plans, which means art studios do not need to apply for space usage permits in such locations. We expect demand for cost-effective space from creative and IT-related industries to grow in the coming quarters. This is a positive sign for areas already targeted for gentrification, particularly Kowloon East and West for traditional usage.”
CBRE Outlook Q2 2016
- 3PL operators will likely consider rationalization of
space over
the next 6-12 months. More choices will be available for larger users.
- Forced relocation out of buildings scheduled to be revitalized
will continue to drive leasing activity for small-to-medium-sized users.
- Self-storage will continue to expand but likely at a
slower rate as
the weak residential sales market has dimmed its short-term outlook.
- Rental pressure on factories is being offset by demand for
alternative use of non-traditional industrial or logistics space.
- Supported
by the limited market supply, flatted factory rents will remain flat in
2016 despite weaker macro conditions.
- Industrial/office buildings (I/O) rents will be
under pressure as demand is subdued.
CBRE Highlights Q1 2016
- Total
value of trade in goods in Hong Kong dropped 8.2% y-o-y in January and February
combined, its worst performance since 2009.
- Investment
turnover and volume for industrial properties slumped in Q1 2016 following the
expiry of the industrial revitalization scheme, with only three transactions
worth over US$10 million registered.
- A
total of 114,000 sq. ft. of factory space was taken up by the top five
self-storage operators in Q1.
- The
government extended its concessionary scheme for data center development,
signaling its recognition of the urgent need for data center space to cater to
long term industry demand.
- Despite
weak external trade, overall warehouse rents rose 0.4% q-o-q; rents for
direct-ramp access space were flat; and rents for cargo-lift access space edged
up 1.1% q-o-q. Noticeably there was strong take-up in ATL, the largest
logistics facility in Hong Kong.
- Rents
for I/O buildings registered a 2.3% q-o-q decline due to increased competition
from recently launched revitalized buildings.
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