Choosing business premises

Choosing a business premises

In Hong Kong a wide variety of business premises are available within a small radius. While prices in the premium ‘Central’ location can be high, Hong Kong’s compact city and efficient transport system mean good value sites can be found within a short distance of the CBD.

Leasing is normally arranged through an agent and procedures are straightforward, with the same regulations applying to local and foreign companies.

Office properties

Hong Kong’s premium office space is found in the ‘Central’ district on Hong Kong Island. Other popular office districts include Wanchai, Causeway Bay and Quarry Bay on Hong Kong Island, and Tsim Sha Tsui on the Kowloon peninsula.

A. Leased offices
Leases are typically two or three years with an option to renew. A tenancy agreement covers the respective duties and obligations of landlord and tenant; a deposit (normally two to three months) is required.

Other costs may include:

(a) One-off fee to the property agent (normally one month’s rent)

(b) Management service charges – this typically covers air conditioning, security, common areas, cleaning and other building services

(c) Government rates at 5% of annual rental value, payable quarterly in advance

(d) Legal fees, should you engage a lawyer to process the tenancy agreement

B. Serviced or Virtual Offices
Many companies prefer the option of a serviced, or virtual, office when they first arrive. Serviced offices are available across Hong Kong and allow for short-term leases, and provide tenants with a range of secretarial services. Virtual offices provide a mailing address and receptionist, who will answer the phone in the name of your company.

C. Industrial buildings
Hong Kong offers three main types of industrial buildings:

Flatted factories are for general manufacturing processes, normally intended for sale or lease.

Industrial/office premises comprise floor space in developments with planning permission and lease modification providing for industrial/office use, and are certified for occupation as such

Specialised factories comprise all other factory premises, primarily purpose-built for specialised manufacturing process, usually for occupation by a single operator.

Most of the flatted factories and industrial/office buildings are found in Kwun Tong and Tsuen Wan, while around 80% of specialised factories are in the New Territories.

D. Specialist centres (R&D, laboratory, high-tech facilities)
Some companies require a specialist office environment, or choose to locate among similar, or complementary, businesses. Facilities, including incubator services, in Hong Kong for companies involved in science, technology, design or research and development include:

- Hong Kong Applied Science and Technology Research Institute (ASTRI)
- Hong Kong Science and Technology Parks Corporation (HKSTP)
- Cyberport – providing specialist offices for the IT and electronics industry
- Hong Kong Design Centre