Industrial demand in Q3 spurred by tenants forced to move

And total exports grew slightly.

In Hong Kong's industrial real estate market, it has been noted that tenants being forced to relocate (mainly from buildings approved for revitalization) continued to drive leasing demand for industrial space.

According to a research note from CBRE, further, after falling for 15 consecutive months, Hong Kong’s total exports saw a 0.8% y-o-y growth in August 2016, narrowing the y-t-d contraction to 3.4%.

Warehouse vacancy edged down 0.4 percentage points q-o-q to 4.0%. Yet average warehouse rents decreased by 0.5% q-o-q in Q3. Also, landlords offered more rental incentives in exchange for lower vacancy.

The report notes that the figures are preliminary and may be subject to change in the final report.