Jones Lang LaSalle(US:JLL) Zhi Tong Cai Jing·2025-09-03 07:24Core Insights - The report from JLL indicates that Hong Kong's Grade A office leasing market recorded a positive net absorption of 189,500 square feet in July, marking four consecutive months of positive absorption since April [1] - Alex Barnes, Managing Director of JLL Hong Kong, noted that the leasing activity is primarily driven by tenants seeking higher quality office spaces, taking advantage of falling rents to secure better properties [1] - Cathie Chung, Senior Director of Research at JLL, highlighted a slight improvement in the overall vacancy rate for Hong Kong offices, which decreased to 13.4% by the end of July, with most sub-markets experiencing a decline in vacancy rates [1] Leasing Activity - The notable leasing activity includes the Shell Company leasing 12,300 square feet at The Millennity in Kwun Tong, moving from Landmark East in the same district [1] - The vacancy rates in specific areas showed varied trends, with Eastern Hong Kong Island and Eastern Kowloon decreasing to 13.4% and 20.2% respectively, while Wan Chai/Causeway Bay experienced a rise in vacancy to 9.6% [1] Rental Trends - Despite the positive absorption and slight improvement in vacancy rates, the downward trend in office rents continues, with a 0.5% month-on-month decline in July for Grade A offices [1] - The most significant rent drop was observed in Eastern Hong Kong Island at 2.6%, followed by a slight decrease of 0.7% in Eastern Kowloon and a minor decline of 0.2% in Central [1]