Hong Kong Figures - Industrial Q4 2023

January 17, 2024 5 Minute Read

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  • Industrial leasing activity contracted from the previous quarter, partially due to seasonal factors. Occupiers also remained cautious due to ongoing global economic uncertainty.
  • Major leasing transactions included Christian Dior committing to 220,000 sq. ft. in Goodman Westlink in Tuen Mun to consolidate various locations and upgrade its logistics operations. The company also reportedly selected this particular property because of ESG and sustainability related criteria.
  • Expansion by companies supporting mainland Chinese electric vehicle manufacturer BYD continued this quarter alongside the group’s global expansion. An additional 80,700 sq. ft. of space was leased by BYD distributors in various locations in Q4 2023. Over the course of 2023, BYD related companies leased 313,400 sq. ft. of space in Hong Kong for showrooms and 4S centres.
  • Warehouse vacancy held flat at 5.3%, a fall of 0.02-ppt from last quarter. Vacancy for ramp-access space fell 0.08-ppt to 8.2% but increased by 0.06-ppt to 0.9% for lift-access space. The vacancy rate in the newly completed Cainiao Smart Gateway on Airport Island remained unchanged.