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Industrial Sales and Leasing Hong Kong

July 2020


Reihe: Savills Market in Minutes

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  • Erscheinungsdatum : 01.07.2020
  • Seiten : 3 Seiten
  • Datei-Typ : PDF-Datei
  • Größe : 256,66 kB
  • Sprache(n) : Englisch

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  • The second quarter saw a continued drift in Hong Kong's trading and retail performance negatively affecting logistics demand, particularly from end users, 3PLs and freight forwarders. Market activity virtually ground to a halt over April and the first half of May as the virus outbreak hit a peak, but gradually resumed towards the end of May and June with many operators looking for cheaper accommodation options given the challenging conditions.
  • While some were looking to relocate to cut costs, other larger operators decided to downsize to reduce overheads, and distressed operators surrendered their space midway through their leases leaving heavily invested renovations behind. As a result, warehouse vacancy continued to increase to 3.3% in Q2/2020, with warehouse rents falling by 4.1%, the highest q-o-q downward adjustment since the GFC in 2009.
  • Even though downsizing and business closures have been commonplace among logistics operators, demand was sustained from e-commerce logistics operators, food factories and mask manufacturers who took up warehouse and industrial spaces, though only in small parcels.

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