Stuck with 20,000 sq ft of prime space on Russell Street, Hong Kong landlord splits it into smaller chunks to find tenants
- The owner of 20,000 sq ft of space in Plaza 2000 is partitioning the ground floor into four units, the smallest of which is 148 sq ft
- The landlord is asking for HK$310,000 per month, or HK$61 per sq ft, for a 5,042 sq ft space on the second floor, the lowest since the early 2000s, sources say
A Hong Kong landlord, unable to find a tenant for a large space in one of the world’s most expensive shopping districts, is splitting it into smaller units in a bid to lease them out since losing Prada in June last year. And one of the units is 40 per cent cheaper than a similar space leased less than a week ago in the next building.
The owner is asking for HK$310,000 (US$40,000) per month for a 5,042 sq ft space on the second floor, or about HK$61 per sq ft, a level that reflects the cheapening of the Causeway Bay retail market after months of social unrest and the Covid-19 pandemic triggered an unprecedented slump in the city’s retail and tourism industries.
“It is the cheapest rent along the street that I can recall of in the past 20 years,” said Michael Chik, managing director of Sheraton Valuers, who has been involved in the industry for more than 40 years. His firm specialises in leasing of commercial properties.
Choi could not be reached for comment. He did not reply to phone messages left with his office.
