
The Henderson’s 90% occupancy underscores improving demand even as broader vacancy rates remain elevated amid continuing structural shifts
The latest evidence of an improving office property market in Hong Kong has emerged with The Henderson, a newly completed landmark tower in the city’s Central business district, reporting approximately 90 per cent occupancy only one and a half years after welcoming tenants.
Developed by Henderson Land, the 36-storey building has attracted a range of high-profile occupants, including auction house Christie’s, investment firms such as Point72 and General Atlantic, and international law practices, signalling growing interest in premium workspace even as overall market conditions remain mixed.
The strong leasing performance at The Henderson suggests that demand for prime office space is gathering pace, aligning with data showing elevated net take-up of office properties across the market that reached about 1.73 million square feet in 2025 — the highest level since 2018 — particularly in Central-Admiralty and Kowloon West.
At the same time, broader vacancy rates in the city’s office sector have remained high, with overall vacancy rising to roughly 17.5 per cent due to an influx of new supply and ongoing structural adjustments in post-pandemic demand patterns.
Rents for Grade A office space, which had declined significantly in recent years, showed signs of stabilising, with declines slowing markedly in the second half of 2025 and continuing into 2026. Industry observers say this dynamic reflects a “flight to quality,” with tenants favouring modern, well-located buildings over older stock, contributing to more robust performance at new developments like The Henderson.
Market analysts further note that while oversupply and rent pressures persist, leasing activity — particularly from financial, professional and emerging sector firms — is improving, and landlords are increasingly offering flexible leasing terms to attract and retain tenants amid evolving workplace strategies.
The contrast between strong occupancy at select premium assets and ongoing challenges elsewhere highlights a nuanced recovery, in which high-specification office space in core locations leads the upturn even as the rest of the market continues its recalibration under the influence of new supply additions and shifting occupier preferences.
Developed by Henderson Land, the 36-storey building has attracted a range of high-profile occupants, including auction house Christie’s, investment firms such as Point72 and General Atlantic, and international law practices, signalling growing interest in premium workspace even as overall market conditions remain mixed.
The strong leasing performance at The Henderson suggests that demand for prime office space is gathering pace, aligning with data showing elevated net take-up of office properties across the market that reached about 1.73 million square feet in 2025 — the highest level since 2018 — particularly in Central-Admiralty and Kowloon West.
At the same time, broader vacancy rates in the city’s office sector have remained high, with overall vacancy rising to roughly 17.5 per cent due to an influx of new supply and ongoing structural adjustments in post-pandemic demand patterns.
Rents for Grade A office space, which had declined significantly in recent years, showed signs of stabilising, with declines slowing markedly in the second half of 2025 and continuing into 2026. Industry observers say this dynamic reflects a “flight to quality,” with tenants favouring modern, well-located buildings over older stock, contributing to more robust performance at new developments like The Henderson.
Market analysts further note that while oversupply and rent pressures persist, leasing activity — particularly from financial, professional and emerging sector firms — is improving, and landlords are increasingly offering flexible leasing terms to attract and retain tenants amid evolving workplace strategies.
The contrast between strong occupancy at select premium assets and ongoing challenges elsewhere highlights a nuanced recovery, in which high-specification office space in core locations leads the upturn even as the rest of the market continues its recalibration under the influence of new supply additions and shifting occupier preferences.














































