Large occupiers lead Hong Kong's leasing demand in 3Q15

Amidst a sluggish retail market.

Despite the weak retail market, leasing demand from retailers and other users remained relatively resilient in Q3 2015.

According to a research note from CBRE, there were a number of relocation and consolidation requirements from large occupiers.

Noteworthy leasing transactions include a fast fashion retailer securing 200,000 sq. ft. space at ATL Logistics Center in Kwai Chung for a move within the next 6 months.

Here's more from CBRE:

Interestingly, the move was tied to a desire to upgrade and expand from their existing low-rise facilities in the outer New Territories and whilst the headline rental rate is higher, the efficiency benefits compensated.

Retailers' logistics operations in Hong Kong often serve the wider region and ensuring demand remains solid at a time when local retail market is subdued.

Prime warehouse vacancy edged down 0.2 percentage points to 2.6% during the period.