Susquehanna latest to pick up larger office space in Hong Kong’s Central, sources say

Susquehanna International Group, a US investment firm, has entered into a lease agreement for over 4,808 square metres (51,762 square feet) of office space at the Cheung Kong Center II in Hong Kong's Central district, according to market sources. The Cheung Kong Center II is a prime office skyscraper developed by CK Asset Holdings.

Susquehanna's expanded space would occupy three floors of the building. The company's current office location in Hong Kong is at AIA Central, located on Connaught Road Central, near the Cheung Kong Center II on Harcourt Road. Susquehanna moved to its current location in 2021, vacating Three Garden Road, Central, and achieving considerable cost savings.

The Hong Kong office property market is experiencing a slow recovery, with Central leading the growth, according to analysts. Jane Street, a trading firm, recently signed a record-setting lease in Central. Industry experts predict continued demand for high-quality office spaces in Central from financial institutions due to its status as Hong Kong's primary business district.

Office vacancy rates in the Central business district dropped to 10.2% by the end of Q2, down from 14.5% a year prior, as occupant demand remains strong. Office spaces in Central declined to 10% vacancy as of August. Despite the construction of approximately 111,484 square metres (1.2 million square feet) of new office space in the second half of the year, Colliers forecast that rent corrections in Central will likely be minimal, as the market had already factored in the new supply.

Furthermore, Coliers upgraded its forecast for Central and Admiralty rents to a 10% increase for the current year.