Small and medium-sized companies have been driving the office market in Kowloon East recently.
From April through mid-August, about 38 percent of office leasing transactions in the district involve units under 5,000 square feet, the usual kind of area that suits the needs and budget of SME tenants, the Hong Kong Economical Journal reports.
Last year, the proportion was only 27 percent.
As office supply in Central and Wan Chai is getting tight, more SMEs look to Kowloon East as an alternative. Cheaper rentals provide another draw.
Renovated industrial buildings are particularly popular, real estate firm Jones Lang LaSalle told HKEJ.
Pioneer Place, the largest industrial building revitalization project last year, is already over 80 percent occupied.
New projects are also well-received. The Mark in Kwun Tong, which was launched late last year, is about 50 percent let, and most of the tenants are SMEs in trade and design business.
Kowloon East is gradually transforming from an industrial zone into a business district after the government launched its Energising Kowloon East scheme in 2012.
Many new projects launched in recent years have adopted high-grade office specifications like raised floor systems and executive washrooms. Green features like LED lighting are also becoming common.
SME-targeted designs such as WiFi-enabled hot desks and smaller floor plates are also making such properties popular.
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