Retail rents edged higher in 2Q14 due to tight vacancies in big-time shopping hub

Leasing negotiations were also observably more measured.

Sustained leasing demand and a tight vacancy environment in the city’s best shopping locations helped retail rents edge higher in 2Q14.

According to a research report from JLL, however, with vacant shops starting to appear along some High Streets and sales slowing, retailers adopted a more measured approach in leasing negotiations.

As a result, prime rentals remained broadly stable, edging up by less than 0.5% q-o-q in 2Q14.

Here’s more from JLL:

Activity in the investment market recorded a surprising pick-up with investors showing interest in larger sized premises with value-add potential in non-core locations.

A portfolio of shops (15,088 sq ft) on the third floor of Diamond Square in Shun Tak Centre in Sheung Wan was sold to a Mainland investor for HKD 230 million.

Link REIT sold four local shopping centres, including, the retail podium of Tung Hei Court (6,340 sq ft) in Shaukeiwan for HKD 72.9 million; Hing Tin Commercial Centre (28,313 sq ft) in Lam Tin for HKD 210 million; Kwai Hing Shopping Centre (24,664 sq ft) in Kwai Chung for HKD 438.839 million; and Wah Kwai Shopping Centre (41,878 sq ft) in Aberdeen for HKD 518 million.