This building is set to be one of Hong Kong’s largest logistics centres

It has a gross floor area of 3.8 million sq ft.

The Cingleot Premium Logistics Centre is scheduled to be completed in 2023. With a 3.8 million sq. ft. gross floor area (GFA), it will be one of the largest logistics centres in Hong Kong. 

Located in Chap Lap Kok, Colliers says this centre should draw the attention of air freight dependent occupiers, but it is unlikely to strongly impact warehouse rents in traditional logistics hubs such as Kwai Chung, Tsuen Wan and Tsing Yi. 

Here’s more from Colliers:

We observe that the Hong Kong government has sped up the progress of brownfield land resumption for development of the Northern Metropolis. We forecast a temporary shortage of industrial supply in the northern districts in the coming three years. 

This is because although there will be industrial land sales for multi-storeys facilities to accommodate industrial occupiers affected by the redevelopment, that supply is not scheduled to be completed until 2027. 3PL operators are still closely monitoring the market for opportunities to expand or consolidate their leasing portfolios. 

We expect warehouse rents to remain resilient in 2023 and are forecasting rental growth of 2% YOY. The reopening of the mainland-Hong Kong border in early 2023 will facilitate Hong Kong’s economic growth, maintaining demand for general industrial properties and helping to keep pushing rents up.