Mango Signs Lease for Prime Location in Central Hong Kong at 50% Discount

Mango's New Lease in Central Hong Kong

Spanish fast-fashion brand Mango has clinched a three-year lease for a new shop in Central, Hong Kong’s premier retail area, at a discount exceeding 50% from its previous peak. This retail space, spanning 14,000 sq ft over two levels at Asia Standard Tower on Queen’s Road Central, signals an intriguing chapter in a challenging market.

Details of the Lease Agreement

• The lease term starts from September 1 to August 31, 2027.
• The initial monthly rent is set at HK$1.25 million (US$160,220), increasing by HK$50,000 each year.
• This new rent is 55% lower than the peak of HK$2.8 million paid in 2012, when Topshop operated here through a partnership with Lab Concept.

Impact of Retail Challenges

The Hong Kong retail sector continues to grapple with significant difficulties due to the pandemic’s lasting impacts and changing consumer behaviors. Recent statistics reveal that retail sales have faced a continual decline, with June experiencing a 9.7% year-on-year drop, leading to four consecutive months of contraction.

Vacancy Rates and Market Dynamics

According to CBRE, there is a notable softening in leasing momentum within the market, exacerbated by diminished space availability and uncertainty surrounding consumer expenditure. Vacancy rates for elite shopping areas have shown some improvement, yet the overall leasing momentum indicates cautiousness among retailers.