Hongkong Land Signs Up Law Firm HFW to Lease Central Floors Amid Rebound Hopes

Hongkong Land announced Tuesday that global law firm Holman Fenwick Willan has taken up two floors at one of the developer’s buildings in Central, as the premier office district shows signs of rebounding after a multi-year struggle.

London-based HFW relocated to the 22nd and 23rd floors of Alexandra House on Des Voeux Road Central this month — leasing 22,000 square feet (2,044 square metres) in total — after almost three decades spent in Admiralty, Hongkong Land said in a release.

The regional builder, which is in the middle of a strategy overhaul to diversify beyond its home city, said the fresh lease bolsters a Hongkong Land Central portfolio in which legal firms make up 31 percent of all office tenants and occupy over 1.1 million square feet. The portfolio boasts almost three-quarters of the major law firm leases across Greater Central (including Admiralty and Sheung Wan), according to the developer.

“We are delighted that HFW chose to relocate to Alexandra House in the heart of Central, after more than four decades in the city,” said Neil Anderson, director and head of office at the commercial property division of Hongkong Land. “The transaction reflects a continuing ‘flight to quality’ trend in the market and strengthens our portfolio as a premier address for legal services in Hong Kong.”

Moving on Up

HFW’s upgrade at the 1970s-era Alexandra House comes as tenants last month took up 81,100 square feet more than they gave back in Central, even as citywide Grade A leasing recorded a negative net absorption of 87,500 square feet, according to JLL.

Central vacancy improved to 11.3 percent in January from 11.6 percent the previous month as the rate of empty space across Grade A submarkets edged up 0.1 points to 13.3 percent, the consultancy said in a release.

In a positive sign for the city, 2024 saw the number of regional headquarters based in Hong Kong rise for the first time in five years, said Alex Barnes, managing director and head of office leasing advisory at JLL Hong Kong.

“The number of regional headquarters has increased 5.5 percent to 1,410 as at end-2024, which could support the city’s office leasing market,” Barnes said.

Hong Kong’s Grade A office rents dipped 0.2 percent last month from December levels, with those in Central and Wan Chai/Causeway Bay down 0.1 and 0.2 percent, respectively. Hong Kong East and Kowloon East saw larger drops of 0.8 and 0.3 percent, according to JLL.

High on The Henderson

In another bullish indicator for the prime office district, US investment manager Point72 has leased 55,000 square feet of space across four floors at Henderson Land’s The Henderson on Murray Road in Central, HKET reported.

Point72 is taking up levels 27 to 30 — an area of 13,000 to 15,000 square feet per floor — and paying monthly rent of around HK$120 ($15.44) per square foot, sources told the online news portal. The firm owned by hedge fund billionaire Steve Cohen currently leases 35,000 square feet at Chater House in Central.

The deal is set to make Point72 the biggest tenant at The Henderson after British auction house Christie’s and US private equity giant Carlyle Group booked an estimated 70,000 square feet and Swiss watchmaker Audemars Piguet committed to a full floor measuring 12,000 square feet.