A claw machine arcade has secured a short-term lease for a ground-floor shop on King’s Road in North Point at just HK$12.50 per square foot, lower than some industrial units, highlighting the pressure landlords face amid a sluggish market.
The 800-sq-ft shop had been vacant for six months after a former tenant, an aquarium shop, exited its HK$45,000-per-month lease. The landlord initially asked for HK$55,000 per month, but ultimately accepted an offer of HK$10,000.
While short-term and long-term rents are not directly comparable, the new lease represents a nominal 78 percent decline from the previous HK$45,000 monthly rent.
Attracted by the HK$10,000 all-in rent, the new tenant reportedly signed the six-month lease sight unseen, and may consider a long-term contract if business holds up.
By comparison, older industrial buildings in the city are commanding over HK$13 per sq ft on average. Larger units of around 1,000 sq ft in Kwun Tong Industrial Centre typically rent for HK$14 to HK$15 per sq ft, while smaller 500-sq-ft spaces in nearby Hoi Luen Industrial Centre fetch over HK$15.
STAFF REPORTER
