Rent in the commerce district of Hong Kong is reached staggering rates and makes one question how a company can afford to pay $1943 per square foot and still stay afloat. These rates are actually currently increasing because some companies see Hong Kong as the lead into China. Rent prices for retailers increased by 32 percent last year. The current projection for rent increase is 15 percent for 2012. The brand manager from Abercrombie and Fitch sees it as vital to pay these high prices to gain exposure to the mainland Chinese people. Interestingly enough, Abercrombie doesn't see profit as the overall goal for the Hong Kong location, it's actually more of an advertising vice they say. Whether the investment proves to be a successful venture is yet to be determined, but for now the real estate moguls of Hong Kong are sure to be happy with their commissions.
http://www.businessweek.com/news/2012-02-28/hong-kong-rent-topping-manhattan-doesn-t-faze-forever-21-retail.html
Dallen Shakespear
Wow! That is outrageous. I get that there is more traffic and higher sales in urban metros like Manhattan and Hong Kong, but still. It blows my mind that there are these places where real estate costs so much and yet, such a small portion of the earth has people living on it. I'm glad I'm not in the retail industry paying those prices!
ReplyDeleteCrazy!! So I'm guessing the prices in Hong Kong won't be much cheaper than here... bummer
ReplyDeleteI used to think that things are cheaper in Hong Kong, but it's just like NYC and Tokyo. Expensive!
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