Grade A office rents climb.

(From The Standard)

Byline: Eli Lau

Grade A office rents rose by as much as 10.4 per cent in Hong Kong last month because of the dwindling supply of office space, according to real estate agencies.

Property consulting firm Knight Frank said rents in areas such as Wan Chai, Causeway Bay and Quarry Bay were being pushed up by landlords, amid steady economic growth and rising interest from tenants looking for space outside the Central business district.

Grade A office rents increased by an average of almost 6 per cent in August to HK$20.13 per square foot, it said.

Central rents have shown the fastest rent growth so far this year, driven by strong demand from financial institutions as well as business service providers. ``Landlords have responded by raising rents and dropping the number of rent-free months for new tenants while office occupiers are looking to other districts for available space, particularly whole floor or larger space users,'' Knight Frank executive director Mark Bernard said.

Bernard noted there were several major negotiations under way for space in Three Pacific Place in Wan Chai. ``The building is ...