Highlights
Hong Kong commercial leasing market is very flexible 3 year lease offers flexibility to both the tenant and his landlord Some long-term leases include a ‘rent-review’ break after three years. To see full article, kindly click here.
Tel. No.: +852 2116 8599 Fax No.: +852 2846 5100
6th Floor Three Pacific Place 1 Queen's Road East Hong Kong
http://www.jllproperty.com.hk/
Three-Year Lease in Hong Kong An increasing number of global companies are assessing the prospect of renting an office in Hong Kong. Their motive for doing so varies. Hong Kong presents an exceptional base for international businesses for an abundance of reasons. This includes its strategic position as a gateway to Mainland China, as well as the fact it boasts the highest economic freedom score on a global scale and the taxes in the city are some of the lowest in the world. To begin with, it is imperative to establish that one of the main benefits associated with Hong Kong’s commercial leasing market is the flexibility it provides. This is not only represented by the vast array of office types – such as Grade A office space and portfolio owned buildings – but also by the diverse facilities and various contract options that are accessible. When it comes to the contractual agreements that are signed between businesses and landlords, there is one significant and evident trend, the popularity of a three- year denominated lease. The majority of landlords and companies elect to opt for this contract length when agreeing terms for office space. The main motive behind this type of lease is flexibility. It is not uncommon for rent prices to fluctuate in Hong Kong. After all, this is a location that is currently attracting a considerable degree of global attention, especially commercially. A three-year lease allows both the tenant and landlord the security of knowing that the rental is fixed for the following three years. This consequently allows both parties to budget more effectively, which is pivotal for any business. Some leases will be presented as long-term, with a ‘rent-review’ break every three years. This allows the security of tenure, but also for the adjustment of the rental (either up or down) so both parties can reap benefits. The fluctuation of rental prices means they can move downwards as well as upwards, and thus this is something you may wish to capitalize on. Moreover, not all landlords will be willing to offer such long rental agreements, especially in a location flourishing as rapidly as Hong Kong. It is advisable to use the services of a reputable property agent when attempting to secure a lease, as they will be able to ensure you secure the terms you are happy with. They have access to a wider scope of offices and they have the skills to negotiate a contract that satisfies your business demands.
To see full article, kindly click here.
Tel. No.: +852 2116 8599 Fax No.: +852 2846 5100
6th Floor Three Pacific Place 1 Queen's Road East Hong Kong
http://www.jllproperty.com.hk/