2024 Hong Kong Office Reinstatement Outlook: Navigating the Landscape of Expanding Spaces, Lower Rents, and Evolving Markets
Increasing Office Space and High Vacancy Rates: There is an expected addition of 8.2 million sq ft of office space from 2022 to 2024. This surge in new office spaces, along with record-high vacancy rates, is projected to push rents lower in the coming year. This could lead to a more competitive market for office reinstatement services as businesses may take advantage of lower rents to relocate or upgrade their office spaces.
Decline in Office Rents: Office rents in Hong Kong are expected to fall by 7-9% in 2024. This decline in rent could influence the decisions of businesses regarding office space leasing and reinstatement.
Transformation of Office Market Landscape: The office market landscape in Hong Kong is evolving into multi-centric conurbations, moving away from traditional core office districts to diverse submarkets. This could mean a shift in the areas where office reinstatement services are in demand.
Office Reinstatement Cost 2024 | Hong Kong
Office reinstatement is an inevitable process for tenants who are vacating their premises. It involves the removal of fixtures and fittings, alterations made to the space, and the return of the office space to its original condition as per the tenancy agreement. One of the significant concerns for tenants during office reinstatement is the cost involved in the process. In this article, we will discuss the factors that affect the cost of office reinstatement in Hong Kong and provide some general pricing guidelines for different grades of renovation.
The cost of office reinstatement in Hong Kong depends on several factors, such as the grade of the existing renovation in the office, the grading of the building, and the job scope or landlord requirements. Different grades of renovation have varying levels of finishings and furnishings, which can impact the cost of the reinstatement process. For instance, premium renovation involves luxury and extravagant fittings and furnishings, while budget renovation involves only the necessary fixtures and fittings.
The landlord or BMO requirements for a grade A premium office will be different from a grade C office. Although keep in mind, if you have a grade C office with premium renovation your costs to reinstate the office will be different from a grade A office with economy renovation.
To provide a general idea of the office reinstatement cost in Hong Kong, we have listed some pricing guidelines based on different grades of renovation. However, please note that these are just reference points and may vary depending on the specific job scope and building requirements.
Renovation grade can be broken down into the following:
Premium Renovation - Luxury and extravagant with all first-class finishing and furnishings. No expense is spared
Professional Renovation - Think business class on a plane. Has medium to high-class finishing and the furnishings have a professional outlook without the luxury additions.
Economy Renovation - Professional yet cost-efficient with average finishing.
Budget Renovation - No muss no fuss. Low cost, only necessities.
Agrey pricing is, cost efficient and transparent without any hidden costs. Below is general pricing for office reinstatement projects in Grade A Buildings. Please note these are general guidelines and should only be used as reference points. If you would like more information on different grade buildings please reach out to Agrey.
Office Reinstatement Cost | Premium Renovation
The office reinstatement cost for offices with Premium renovation can range anywhere between $250 - $380 per sqft for an A-grade premium building.
Office Reinstatement Cost | Professional Renovation
The office reinstatement cost for offices with Professional renovation can range anywhere between $180 - $280 per sqft for an A-grade premium building.
Office Reinstatement Cost | Economy Renovation
The office reinstatement cost for offices with Economy renovation can range anywhere between $100 - $230 per sqft for an A-grade premium building
Office Reinstatement Cost | Budget
The office reinstatement cost for offices with Budget renovation can range anywhere between $80 - $130 per sqft for an A-grade premium building.
In conclusion, the cost of office reinstatement in Hong Kong depends on several factors, such as the grade of the existing renovation, the grading of the building, and the job scope or landlord requirements. Tenants must understand these factors and collaborate with a professional office reinstatement service provider to minimize costs and ensure a smooth reinstatement process.