Retail leasing sentiment picks up in February

A notable transaction during the month was the ground floor of 14 Canton Road.

Real estate expert, JLL, said leasing sentiment picked up in the retail market in February on the back of rising inbound visitation and improving retail sales.

Retail sales rose 7.0% YoY, whilst visitor arrivals nearly hit 500,000 in January.

“This, however, only represents about one-tenth of the peak level in the pre-Covid period. The tourism level is expected to rise more visibly following the scrapping of quotas on inbound arrivals in February,” JLL said.

In February, there were three major retail leasing transactions.

The biggest amongst the three was the leasing of the 1,000 sq ft ground floor shop at 14 Canton Road in Tsimshatsui to a chain pharmacy for a monthly rent of $500,000.

This represents a 55% discount from the rentals of the last long-term lease tenant, Puyi Optical.

Another notable transaction was the sale of a ground-to-fourth floor shop (18,234 sq ft) in Mongkok Commercial Centre at 16-16B Argyle Street in Mongkok for $350m to a private investor at an estimated initial yield of around 3.1%.