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Hong Kong property: Templeton joins China Re in relocating to Two IFC as office rents fall

  • Franklin Templeton, which has leased 21,700 sq ft on the 62nd floor of Two IFC, will shift from its present premises in Chater House
  • Hong Kong’s office rents fell 0.5 per cent month on month in November, while the vacancy rate rose to 12.9 per cent from 12.6 per cent

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Falling office rents in Hong Kong are providing tenants a chance to upgrade to premium towers such as Two IFC. Photo: Dickson Lee
Hong Kong’s Two International Finance Centre (Two IFC) seems to be the preferred address for the banking and finance sector, as office vacancy rates rise and rents fall in the city.
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Just a week after China Re Asset Management, a state-owned reinsurer, said it would relocate to the grade A tower in the core Central business area, US asset manager Franklin Templeton confirmed it was moving to a bigger office in the building that also houses the Hong Kong Monetary Authority’s headquarters.

“The new office space at IFC will be larger, significantly larger, than our current space,” a Franklin Templeton spokeswoman said. The company, which has been based in Chater House, another prime office tower in Central, for the past 22 years, did not say when it planned to move to the new office.

Based in San Mateo, California, Templeton is a global multi-asset manager overseeing about US$1.6 trillion of funds.

A general view of commercial buildings in Central, Hong Kong’s core business area. Photo: Yik Yeung-man
A general view of commercial buildings in Central, Hong Kong’s core business area. Photo: Yik Yeung-man
In November, average monthly rents for Hong Kong offices fell by 0.5 per cent to HK$52.30 (US$6.70) per square foot, while vacancies edged up to 12.9 per cent from 12.6 per cent in October, according to the latest data from JLL.
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The decline in office rents has triggered many tenants to upgrade to premium buildings in the heart of Central, according to property agents.

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