Landlords in Tsim Sha Tsui are bracing for more tenants ending their lease contracts amid plunging retail sales in the shopping district.
Korean cosmetic brand Nature Republic has terminated its lease agreement for its flagship shop on Granville Road, seven months before the end of the deed, the Hong Kong Economic Journal reported on Tuesday.
The move marked the biggest withdrawal by a commercial tenant in the district this year. It paid a monthly rent of HK$950,000 for the space.
The shop, which occupies 1,640 square feet across three adjacent units, is located at a prime spot right in front of boutique mall The One.
The tenant has been renting the place since last summer.
The landlord has lowered the rent for the space by 5.3 percent to attract new tenants, the newspaper said, citing sources.
Centaline Commercial chief operation officer Stanley Poon said lackluster sales during the Christmas season could be the main reason for Nature Republic’s move.
Before the retailer’s withdrawal, many other shops in the district had ended their leases on a monthly rent of HK$100,000 to HK$300,000.
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