As Hong Kong office rents plummet, landlords upgrade with video walls to lure tenants
JLL says nearly 44 per cent of Hong Kong’s grade A office space is more than 30 years old
“In the past 20 years, landlords of commercial buildings in Hong Kong did not need to do anything and could still have substantial incomes, but it’s nothing like that any more,” said Li Man-on, director of Hing Wai Investment, owner of the Hing Wai Building in Central.
He said the commercial property market had softened since 2020, and rental incomes had dropped significantly.
“I started to think about how to unlock the value of well-located properties in a market downturn,” he said.
Hing Wai spent HK$24 million (US$3.1 million) on a three-dimensional LED video wall installed on the building’s facade. The move generated annual advertising revenue of HK$26 million, which is about equivalent to the total rent for 10 floors, he said.
Whisky maker Macallan opened its first flagship store in Hong Kong in the Hing Wai Building, leasing the second and third floors in December 2023. That accounted for a third of the total rental income of the building, Li said, adding that the waiting list of brands wanting to rent the video wall extended into the middle of next year.