{"id":25412,"date":"2021-10-07T08:22:37","date_gmt":"2021-10-07T01:22:37","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=25412"},"modified":"2021-10-07T08:22:37","modified_gmt":"2021-10-07T01:22:37","slug":"hong-kong-retail-landlords-saved-after-10-decline-in-q2-2021","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/hong-kong-retail-landlords-saved-after-10-decline-in-q2-2021\/","title":{"rendered":"Hong Kong retail landlords saved after 10% decline in Q2 2021"},"content":{"rendered":"

Emerging concepts like art exhibitions and delivery-only kitchens are changing the city\u2019s retail landscape\u00a0<\/span>\u00a0<\/span><\/p>\n

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According to Savills, shopping\u00a0centre\u00a0rents in Q2 2021 decreased by 10.2 percent year-on-year and 45.2 percent from a peak three years ago. joyfull\/Shutterstock<\/figcaption><\/figure>\n

Art exhibitors and delivery-only kitchens are reshaping Hong Kong\u2019s retail landscape, helping occupy landlords\u2019 empty spaces that\u00a0used to be the world\u2019s highest commercial real estate rents, reported South China Morning Post<\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Helen Mak, senior director and head of retail services at Knight Frank, said, \u201cLandlords are more willing\u00a0to accept\u00a0new concepts as they\u00a0need\u00a0to shift their strategy to tap local demand.\u201d<\/span>\u00a0<\/span><\/p>\n

The city\u2019s retail sector has been undergoing a rough downturn, with many international brands like Gap, Topshop, and Prada having either exited or scaled down their operations due to the 2019 political unrest and\u00a0subsequent\u00a0COVID-19\u00a0pandemic.\u00a0<\/span>\u00a0<\/span><\/p>\n

According to Savills, shopping\u00a0centre\u00a0rents in Q2 2021 decreased by 10.2 percent year-on-year and 45.2 percent from a peak three years ago.\u00a0<\/span>\u00a0<\/span><\/p>\n

In Central, a 14,000 square feet store on Queen\u2019s Road has been leasing\u00a0out\u00a0on\u00a0a\u00a0short-term\u00a0basis, after Topshop closed its last and largest store in Hong Kong in October last year.\u00a0However, last week, the two-storey\u00a0store was rented out to Digital Art Fair.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cArt and culture will become a new retail trend,\u201d said Mak.<\/span>\u00a0<\/span><\/p>\n

Retail landlords are also being supported by unexpected tenants, such as video bloggers who have\u00a0opened physical stores after\u00a0converting\u00a0their followers to sales.\u00a0<\/span>\u00a0<\/span><\/p>\n

Moreover, delivery-only kitchens were another emerging leasing trend. These kitchens enable \u201cghost kitchens\u201d for restaurants,\u00a0which is a professional cooking and food preparation facility\u00a0organised\u00a0for the making\u00a0of delivery-only meals.\u00a0<\/span>\u00a0<\/span><\/p>\n

Since its launch in 2017, food delivery app Deliveroo\u2019s delivery-only kitchen, Deliveroo Editions, has expanded to six locations. Its restaurant partners\u00a0can use the space for their business and\u00a0are charged a commission per order.<\/span>\u00a0<\/span><\/p>\n

\u201cDeliveroo invests upfront in the Editions kitchens. This further helps restaurants as they can expand with lower risk in addition to taking very little capital risk,\u201d it told the\u00a0<\/span>Post<\/span><\/i>.<\/span>\u00a0<\/span><\/p>\n

More: Hong Kong luxury rents expect to rise 5-10% by end of 2021<\/strong><\/a><\/p>\n

JLL added that food delivery companies were currently in an aggressive expansion mode.<\/span>\u00a0<\/span><\/p>\n

Oliver Tong, head of retail at JLL in Hong Kong, mentioned, \u201cThey are looking for 5,000 to 6,000 sq ft ground-level shop spaces in densely populated districts.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

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The Property Report editors\u00a0<\/span>wrote<\/span>\u00a0this article. For more information, email:\u00a0<\/span><\/span>propertyreport@propertyguru.com<\/span><\/span><\/a>.<\/span><\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Emerging concepts like art exhibitions and delivery-only kitchens are changing the city\u2019s retail landscape\u00a0\u00a0<\/p>\n","protected":false},"author":12,"featured_media":25413,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[388,171,1064,248],"class_list":["post-25412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-commercial-real-estate","tag-hong-kong","tag-recovery","tag-retail","news_country-hongkong","news_author-property-report"],"acf":[],"yoast_head":"\nHong Kong retail landlords saved after 10% decline in Q2 2021 | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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