Hong Kong Figures - Industrial Q3 2021 (CBRE)

• The trade environment continues to strengthen. High freight forwarding costs mean traders are looking to utilise more warehouse space to protect margins.
• Ongoing power shortages in mainland China highlight the risk of weaker export growth, which could drag on logistics demand in the near term.
• While leasing demand remained strong in Q3 2021. reduced space availability led to a drop in leasing volume compared with the previous quarter.
• Retail and F&B-related occupiers drove demand, while tech and telecom firms were also observed to be seeking space.
• Retailers are expected to become more proactive in securing both retail and warehouse space in the coming months as fundamentals improve.
• A further decline in warehouse vacancy underpinned steady rental growth in Q3 2021.
• With space availability set to remain for longer, further rental growth in expected over the next 6-12 months.

This article was originally published in https://www.cbre.com/