JPMorgan Chase & Co is in talks to rent an office project in Hong Kong’s West Kowloon area, in what could be the biggest leasing deal in the city, according to local newspaper Sing Tao.
The US bank is looking to move from its existing offices in the Central and Kwun Tong districts and occupy all three towers in the Artist Square Towers development, the newspaper said, citing unidentified sources. The project, spanning 672,000 square feet in office space, is located in the West Kowloon Cultural District near a high-speed railway station to mainland China.
Developed by Sun Hung Kai Properties, Artist Square Towers is expected to be completed by 2026. Representatives for Sun Hung Kai and JPMorgan didn’t immediately respond to requests for comment.
If the move materializes, it would see another financial giant relocating out of the central business district during a prolonged market downturn. UBS Group AG announced plans last year to merge its offices spread throughout the city to an upcoming project near the high-speed rail station.
The West Kowloon area, across the harbor from Central, is increasingly drawing international firms looking to cut costs and get closer to their Chinese clients via the train network. It already houses a number of financial firms including Morgan Stanley and Deutsche Bank AG in International Commerce Centre.
Hong Kong’s office market is still under pressure with near record-high vacancies and falling rents. The average office rent of all business districts dropped about 0.8% in the third quarter from three months ago, with property agency Cushman & Wakefield forecasting rents to decrease 4% to 6% this year.
