Demand for space in industrial market softens in 1Q15

There were also some downsizing and relocating.

In Hong Kong's industrial market in the real estate sector, demand for warehouse space softened in Q1 2015.

According to a research note from CBRE, there were also 3PLs downsizing and relocating to lower-cost options.

Further, self-storage operators were actively looking for space but no notable transactions were recorded in the quarter due to the lack of suitable options.

Also, on a higher base of comparison and partly because of the weaker demand, q-o-q rental growth decelerated from 2.2% in Q4, 2014 to 0.4% in Q1 2015.