Hot property: Big banks, fashion stores seek ‘cheaper’, eye-catching Hong Kong retail
From big banks to fashion brands, tenants are taking advantage of potential lower rents for retail space in Hong Kong’s prime areas as they utilise eye-catching locations to boost visibility towards customers, according to agents. HSBC is unveiling its first flagship branch at the Capitol Centre, which was previously occupied by fashion retailers such as Chanel, Victoria’s Secret and Forever 21,…
Banks and fashion retailers are capitalizing on the opportunity to secure retail space in Hong Kong's prime locations due to potentially lower rental costs, according to real estate agents. HSBC, a major bank, is set to open its first flagship branch at Capitol Centre, previously home to high-end fashion stores like Chanel, Victoria's Secret, and Forever 21.
The bank plans to vacate two branches in Causeway Bay, where it currently operates, once the leases expire at the end of October. The new Causeway Bay branch, along with Premier Centre, will open on October 20 after undergoing renovations in its Capitol Centre location.
The 161-year-old bank has committed to paying a monthly rent of HK$4 million (US$510,200) for the 3,716 square metre space, significantly less than the previous rates paid by tenants. The deal marks HSBC as the first non-fashion long-term tenant of prime retail space in this busy shopping district since 2008, when Giordano leased the space for HK$5.06 million per month.
Land Registry records reveal that HSBC's new lease spans five floors, providing a total area of 3,900 square metres, larger than the combined size of its previous Causeway Bay locations. Colliers, a real estate consultancy, notes a growing demand from the financial sector, including private banks, wealth management firms, and insurance companies, who are leveraging the current rental environment to enhance client engagement and boost brand visibility by using high-profile street-front premises.
Meanwhile, fast fashion retailer W. Management is set to take over a significant portion of space previously occupied by Swedish competitor H&M at Fashion Walk on Paterson Street. W. Management has agreed to pay over HK$2 million in monthly rents for a 2,790 square metre space covering three floors. H&M had reportedly been paying up to HK$10 million per month for the entire 4,370 square metres of the building.
W. Management's spokeswoman emphasizes the prime location's accessibility and alignment with the brand's long-term strategic plans in Hong Kong. Despite physical retail facing challenges due to the rise of online shopping, Hong Kong's retail sales grew 7.1% year-on-year in the second quarter, while online retail sales surged by 25.3% in the same period.
Written by urgent.news from South China Morning Post - Hong Kong's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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