“We have seen a lot more smaller size deals, and the launch of Value Properties is to focus on this segment to expand our market share in the foreseeable future,” said Ada Fung, head of advisory and transaction services at CBRE Hong Kong. “While we have a net floor area of 88 million sq ft of grade A stock, there is another 48 million sq ft of non-grade A office stock.” Earlier this month, the Hong Kong Monetary Authority (HKMA) left interest rates unchanged at 5.
75 per cent, following the US Federal Reserve’s decision to keep its target rate in the range of 5.25 per cent to 5.5 per cent, which is the highest level in 23 years.
The HKMA has followed US rate decisions in lockstep since 1983 when it pegged the local currency with the US dollar. In the last three years, 80 per cent of office leasing deals were for spaces less than 5,000 sq ft, according to CBRE research. No other rival property agencies with commercial divisions have a dedicated website or platform for this market segment, providing CBRE with an edge.
Value Properties will pave the way for CBRE to capture the demand for non grade A commercial property, initially focusing on office spaces but later on retail and industrial spaces as well, said Michael Wong, senior director at Value Properties. “We are focusing more on the mid-size occupiers, we are talking about 3,000 to 5,000 sq ft for the office tenants, especially for SMEs [small and medium-sized enterprises], newly set-up companies or even potenti.