High

Desperate landlords offer renovation subsidies to lure tenants as Hong Kong’s vacant office space hits 21-year high

Hong Kong’s commercial landlords are offering incentives such as renovation subsidies to lure tenants, as the amount of office space lying empty reaches the highest level in 21 years, according to property services company CBRE.

Some landlords have begun offering a one-off subsidy to help new tenants fit out their office space, said Alan Lok, executive director of advisory and transaction services for offices at CBRE.

“In some cases, the landlord would offer a subsidy of about HK$100 (US$12.9) per square foot,” said Lok during a briefing on Wednesday.

Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.

The subsidy is attractive because relocation costs in Hong Kong are very expensive, he said. For a prime renovation costing HK$1,000 per sq ft, the relocation cost may add up to HK$1,200 per sq ft after including the price of returning the office to its original state when the lease ends. The cost can be spread out to a monthly HK$30 per sq ft or thereabouts over three years.

“For most relocations with cutting costs as the objective, it takes a place with a rent of HK$30 per square foot less than” the original rent to justify the move, said Lok. “Some offices do not have their head offices in Hong Kong. It is not that easy to approve that sum [for renovation].”

According to CBRE, 7.8 million sq ft of office space – greater than the size of four Central Plazas – sat vacant in Hong Kong in September, the highest since 1999. An additional 950,000 sq ft of surrendered space – returned by tenants before the lease expires – is available in the market, just shy of the size of the HSBC building.

Desperate landlords have been offering a broader range

Continue Reading

Desperate landlords offer renovation subsidies to lure tenants as Hong Kong’s vacant office space hits 21-year high



a skyscraper in a city: The amount of office space lying empty reached the highest level in 21 years in September, according to property services company CBRE. Photo: K Y Cheng


© SCMP
The amount of office space lying empty reached the highest level in 21 years in September, according to property services company CBRE. Photo: K Y Cheng

Hong Kong’s commercial landlords are offering incentives such as renovation subsidies to lure tenants, as the amount of office space lying empty reaches the highest level in 21 years, according to property services company CBRE.

Some landlords have begun offering a one-off subsidy to help new tenants fit out their office space, said Alan Lok, executive director of advisory and transaction services for offices at CBRE.

“In some cases, the landlord would offer a subsidy of about HK$100 (US$12.9) per square foot,” said Lok during a briefing on Wednesday.

Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.

The subsidy is attractive because relocation costs in Hong Kong are very expensive, he said. For a prime renovation costing HK$1,000 per sq ft, the relocation cost may add up to HK$1,200 per sq ft after including the price of returning the office to its original state when the lease ends. The cost can be spread out to a monthly HK$30 per sq ft or thereabouts over three years.

“For most relocations with cutting costs as the objective, it takes a place with a rent of HK$30 per square foot less than” the original rent to justify the move, said Lok. “Some offices do not have their head offices in Hong Kong. It is not that easy to approve that sum (for renovation).”

According to CBRE, 7.8 million sq ft of office space – greater than the size of four Central Plazas – sat vacant in Hong Kong in September, the highest since 1999. An additional 950,000 sq ft of surrendered space – returned by

Continue Reading

LGI Homes (LGIH) Hits 52-Week High, Can the Run Continue?

Shares of LGI Homes (LGIH) have been strong performers lately, with the stock up 9.9% over the past month. The stock hit a new 52-week high of $127.59 in the previous session. LGI Homes has gained 78.6% since the start of the year compared to the -16.5% move for the Zacks Finance sector and the -17.7% return for the Zacks Real Estate – Development industry.

What’s Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn’t missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 4, 2020, LGI Homes reported EPS of $2.21 versus consensus estimate of $1.49 while it beat the consensus revenue estimate by 4.3%.

For the current fiscal year, LGI Homes is expected to post earnings of $9.16 per share on $2.12 billion in revenues. This represents a 30.63% change in EPS on a 15.28% change in revenues. For the next fiscal year, the company is expected to earn $10.24 per share on $2.4 billion in revenues. This represents a year-over-year change of 11.78% and 13.13%, respectively.

Valuation Metrics

LGI Homes may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style

Continue Reading

Stretch your imagination: High Country architects bring clients’ ideas and inspirations to life

The ‘Fly Barn’ is an intimate structure adjacent to the main house, wherein the fly-fishing contingent store their fly rods, vests and drift boat, as well as sit at the bench tying flies and regale each other with fish stories.
Photo courtesy Shepherd Resources Inc.

Everyone has their own ideas about what makes a home truly stand apart from the rest, but sometimes, it takes a little inspiration from others to get those creative juices really flowing. Homeowners curate ideas from all kinds of sources — from magazines to favorite vacation memories — and experienced architects bring those visions to life. Here are several examples of cool home elements to get your motor running.

Lighting it up

Doug DeChant and his associates at Shepherd Resources Inc. believe that light is central to any good design, be it light of the sun, moon or fire.

Whether it’s an indoor fireplace or outdoor firepit, mesmerizing flames go a long way in adding ambiance. Adam Harrison, principal at Shepherd Resources, worked with a client who wanted a 1950s to 1960s lodge with a contemporary twist.

Since fireplaces were always a significant feature of lodges and cabins, Harrison placed a gas fireplace in the middle of the open floor plan. But this isn’t just any fireplace: its long, black steel hood hovers from the ceiling, supported by a truss system so no legs reach to the floor. Of course, such an intriguing element required a unique fire element, so rather than a regular metal log set, Harrison contracted Brooklyn artist Elena Columbo to fashion stainless steel rods to “fuel” the fire.

Recalling the ‘60s, this metal flue element is fully suspended over the primary fireplace, supported by intersecting steel beams. Appropriately, the husband plays folk guitar in the fire’s glow.
Photo courtesy Shepherd Resources
Continue Reading

Elderly homes in Australia under fire after high COVID-19 deaths | Australia News

Melbourne, Australia – Neville Vaughan was the “life of the party” at the aged care home, where he lived in Melbourne’s northern suburbs.

He loved to sing and dance. In February, he even joined the festivities celebrating the 18th birthday of his granddaughter, Rebecca.

But despite being remembered as a very socialble person, Vaughn died alone after contracting the coronavirus, also known as COVID-19, at the nursing home.

Suffering from dementia, the 80-year-old had a hard time comprehending why his family had to socially distance from him, including his wife of 61 years, Margaret.

“My grandmother said that they would have to sit on separate sides of the room, but he would try to come up and hug her,” Rebecca told Al Jazeera.

“And he would say: ‘Why can’t I hug you or give you a kiss?’”

Eventually, visits were banned, and the last time Vaughn saw his wife was through FaceTime at the hospital, where he was transferred after he was diagnosed with COVID-19.

Neville died on August 16, a week before his 81st birthday.

Allegations of mismanagement

Globally, Australia has been praised for largely containing the coronavirus, with an estimated 27,000 cases and 886 deaths as of Thursday.

Yet the elderly account for a staggering 665 of those deaths; people who had picked up the infection in the nursing homes where they were supposed to feel safe. Of those, 635 of the deaths were in the state of Victoria – including Vaughn.

The large number of casualties in Victoria has been attributed to the alleged “mismanagement” of the state’s quarantine system, from which a reported 99 percent of new cases spread.

Neville Vaughn died on August 16, a week before his 81st birthday [Courtesy of Rebecca Vaughan/Al Jazeera]

The deaths, especially among the aged population, has left many

Continue Reading