When the office rents in Hong Kong sink

“In the past 20 years, landlords of trade buildings in Hong Kong have not had to do anything and could still have an essential income, but it is no longer the case,” said Li Man-on, director of Wai Investment, owner of Wai Building in Central.

He said that the commercial real estate market has been soft since 2020 and the rental income had dropped considerably.

“I started thinking about how I can unlock the value of well -situated real estate in a market descendant,” he said.

Hung Wai gave $ 24 million (3.1 million US dollars) for a three-dimensional LED video band that was installed on the facade of the building. The move achieved an annual advertising revenue of $ 26 million, which corresponds approximately to the overall rent for 10 floors, he said.

The Whiskey Maker Macallan opened its first flagship business in Hong Kong in the Hang Wai building and rented the second and third floor in December 2023. This was made up of a third of the entire rental income of the building.