How 2 landmark Central deals boost sentiment in Hong Kong’s office market

When Alex Barnes finally closed the two largest single-tenant office leasing deals Central has seen in more than a decade, the outcome was decisive – but the path there was anything but quick.Barnes, the co-CEO in Greater China and managing director in Hong Kong, Taiwan and Macau at JLL, advised quantitative trading firm Jane Street Asia on a record-setting lease at Central Yard, followed months later by a six-floor commitment from hedge fund Qube Research & Technologies at Two International Finance Centre. Together, the transactions marked the biggest single-tenant office commitments in Central in 10 years.They were struck against the backdrop of a prolonged downturn that left Hong Kong’s office market deeply impaired. Citywide office vacancy is hovering around 17 per cent, while grade A office rents last year were down 41 per cent from their first-quarter 2019 peak, reflecting years of weak growth, geopolitical uncertainty and fading demand.Before the slump, Central’s most sought-after towers were effectively full. “We used to see a waiting list for office space at Two IFC between 2016 and 2019, even though it commanded the highest rents in the market,” Barnes said. “That demand disappeared after the Covid-19 outbreak.”For Barnes, an Australian national with more than two decades in Hong Kong’s property market, the challenge was less about timing than staying close to clients through the downturn. “We had been working on several major office requirements, including the Central Yard deal, but no one else knew when or whether those deals would actually close,” he said.The Hong Kong office market sentiment began to turn early last year, according to Alex Barnes. Photo: Sam TsangBarnes said sentiment began to turn early last year as wealth management remained strong and other parts of the financial sector started to show early signs of recovery in early 2024. “We saw light at the end of the tunnel early in 2025 as our ongoing client work was building momentum,” he said.