Retailers drive growing market for logistics facilities

Amid HK being top retail hot spot.

Hong Kong is the most targeted retail hot spot on the globe, attracting 43 new retailers last year, based a recent survey completed by CBRE.

According to a release from CBRE, with robust growth in tourist arrivals set to continue, Hong Kong’s retail sector is growing along with its demand for warehouse space.

In 2013, retail sector tenants grew to take up approximately 50% of the warehouse space in Hong Kong.

Here’s more from CBRE:

According to CBRE data, a total of 4.7 million sq. ft. of prime shopping center space is expected to be completed between 2014 and 2018, averaging at 0.95 million sq. ft. per annum.

In contrast, only 3 million sq. ft. of prime warehouse space is scheduled for completion over the same period of time, averaging only 0.6 million sq. ft. per annum.

The persistent shortage of new warehouse supply in an already low vacancy environment remains the primary catalyst for pushing rentals even higher.

“In the next five years, there will continue to be an imbalanced level of supply between retail and warehousing in Hong Kong,” said Darren Benson, Executive Director, Industrial and Logistics Services, CBRE Hong Kong, Macau and Taiwan.

“Increasing tourist arrivals will drive retail sales growth and therefore give increasing importance for retailers to establish or expand their logistics footprint in Hong Kong.”