Smaller F&B operators drive HK retail leasing momentum

Upscale Korean dining concepts are leading the surge.

Hong Kong’s retail leasing market is being driven by smaller food and beverage (F&B) operators as demand strengthens across prime shopping districts.

Upscale Korean dining concepts are leading the surge, typically seeking 1,000–1,500 sq. ft. units in popular dining areas.

In contrast, large-format F&B operators remain cautious amid ongoing cost pressures.

Retail leasing momentum accelerated through the first three quarters of 2025 and is expected to rise further in Q4, supported by Golden Week and year-end holiday demand. Prime streets continue to perform strongly, while secondary and tertiary locations face slower leasing activity due to weaker foot traffic.

Mid-market fashion retailers are showing renewed interest in central shopping corridors but remain hesitant to expand beyond prime areas as consumers increasingly shop online.

Luxury brands are expanding flagships rather than store counts, with landlords often subsidising part of the capital expenditure to build long-term partnerships.

Watch and jewellery retailers are restructuring as principals push for single-brand flagship formats. Retail activity is also benefiting from the growing number of sports and entertainment events at Kai Tak Sports Park, which is generating new demand in nearby malls.

With limited prime availability, occupiers are encouraged to plan early and consider pre-leasing opportunities to secure key street locations.