Where do Hong Kong office occupiers prefer to move for their next lease?

Tenants in the CBD are loyal to their current location.

In the Hong Kong Occupier Survey 2024, Colliers engaged 385 office occupiers, eliciting insights into their present conditions and outlook for the next 12 months. The respondents represented companies of diverse sizes, industries and operations across Hong Kong.

To understand occupiers’ sentiment by submarket, Colliers analysed tenants’ current district and their preferred district upon next lease expiry. 

Here’s more from Colliers:

Among the major submarkets, tenants in Central / Admiralty and Kowloon West are the most loyal to their district. 85% of respondents in Central / Admiralty and Kowloon West prefer to remain there, while the ratio is slightly lower in Kowloon East (83%), yet still implies most respondents in Kowloon East are not looking outside their district. 

Companies in CBD fringe areas (Sheung Wan, Wan Chai, and Causeway Bay) have significantly less loyalty to their district. Among these companies we see two separate trends, either moving to the CBD or moving farther away from the CBD. 

Companies looking to move to the CBD, could be looking to upgrade their office location by entering the prime district, or companies previously located in CBD now looking to move back. With Central’s currently attractive rental level, these companies may be considering re-centralisation. Companies looking to move farther from the CBD may be looking for better options in Island East and Kowloon East, seeking further rental discounts or improved quality within their current budget. One respondent currently located in CBD fringe said "value for money" is the major reason to relocate to Kowloon East. 

The overall trend is similar to 2023 findings in terms of 1) Central / Admiralty CBD occupiers are strongly inclined to stay within this district and 2) the proportion of occupiers interested in the CBD decreases as one moves further across Victoria Harbour.