Grade A office rents in Central remain under pressure as key tenants - mainly from the financial sector - continue to scale down operations.
However, outside the core premium office market the outlook is not as bleak for well-diversified office and retail portfolios, says Sunlight Real Estate Investment Trust, a landlord focused on retail and office properties in non-core districts.
The evidence suggests that in the non-core areas, rents seem to be finding a floor. Mr Wu said although leases were yet to be renewed at higher levels, there were a growing number of enquiries from prospective tenants looking to cut costs by moving out of Central.
South China Morning Post