Relocations account for 55% of top Kowloon office deals in August
The increase signals broader tenant demand for better-suited, higher-quality offices before expected rental growth, potentially supporting leasing activity and upward pressure on rents.
Relocations comprised approximately 55% of Kowloon’s top 10 August office transactions by floor area, rising from about 40% over the preceding three months.
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This represents a jump from around 40% in the last three months.
Office occupiers in Kowloon increasingly chose to relocate rather than renew existing leases in August, using the opportunity to upgrade their premises and reposition their footprints ahead of expected rental growth, according to Knight Frank.
Relocations accounted for approximately 55% of the top 10 office transactions by floor area during the month, up from about 40% over the preceding three months, Knight Frank said.
The agency attributed the increase partly to occupiers seeking to lock in rents at current levels while taking advantage of opportunities to move into higher-quality or better-suited space. Leasing activity was also supported by several high-profile transactions and growing demand from the entertainment sector.
The largest leasing deal recorded in August involved the Chinese University of Hong Kong, which committed to approximately 110,000 sq ft of former AECOM office space in Sha Tin. Knight Frank said the transaction underscored continued demand from the education sector.
The insurance sector also remained active, with Sun Life securing approximately 38,000 sq ft at IGC. Meanwhile, Virtual Gaming took around 17,000 sq ft at Gateway Tower 5, adding to leasing momentum from entertainment and technology occupiers.
The August transactions indicate a broadening tenant mix in Kowloon, with education, insurance, entertainment and technology occupiers all contributing to office leasing activity, according to Knight Frank.