JLL: Hong Kong's Grade A office vacancy rate rose to 12.9% in January.

Jones Lang LaSalle (JLL) has stated that due to the completion of new office buildings, the overall Grade A office vacancy rate in Hong Kong rose to 12.9% by the end of January. The overall Grade A office market recorded a net absorption of 160,800 square feet during the month, mainly due to The Henderson pre-leased floors in Central being finalized after the project completion in January. Jones Lang LaSalle (JLL) pointed out that the increase in new office supply has affected the overall market vacancy rate, especially with Central's vacancy rate rising to 10.4% by the end of January, while Tsim Sha Tsui and Kowloon East saw a decrease of 0.4 percentage points in vacancy rates. Major transactions recorded in the month include Franklin Templeton relocating from Central's Jardine House to International Finance Centre Phase 2 in the same district, leasing approximately 23,600 square feet of space. Regarding rental rates, Bo Yalik, Managing Director and Head of Commercial at Jones Lang LaSalle (JLL) Hong Kong, stated that since office rents have significantly declined from their peak, the overall office leasing market is mainly driven by upgrading demand, which will continue to dominate the office market this year. Zhou Churu, Senior Director of Research at Jones Lang LaSalle (JLL), noted that in January, overall Grade A office market rents decreased by 0.6% monthly. In the main market sectors, Central and Hong Kong Island East saw rent decreases of 1.2% and 0.9%, respectively, while Tsim Sha Tsui's rent remained stable.