As retailers continue to grapple with slowing business, more property owners are slashing rent to attract tenants or at least keep them.
A number of recent deals in Mong Kok, a popular shopping district, attest to the trend.
A 600 square-foot street-level shop, which comes with a 400 sq. ft. penthouse, in Hung Tat Building in Dundas Street was recently leased to an Italian yogurt company for HK$150,000 a month, or HK$150 per sq. ft., 21 percent lower than the previous lease, the Hong Kong Economic Journal reports.
A ground-floor shop in MPM Plaza went to a watch shop for a monthly rate of HK$500,000, down 15 percent from the last lease, according to market sources.
Also, a cosmetics brand renewed the lease on its Sai Yeung Choi Street South store for HK$340,000 a month, a 10 percent discount.
While the price cut looks large, it’s small compared with rent growth in recent years.
Retailers may not see a quick recovery but easing rentals at least provide some immediate relief.
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