The rental charge for the 4,540-square foot (421.8 square metres) space occupying three floors – currently under renovation – has risen by a fifth since the Transformers restaurant’s owner iFree vacated the shop, agents said.
Still, the rent is about an eighth of the monthly charge of HK$8.6 million that Burberry paid in 2015 to the landlord Soundwill Holdings during Hong Kong’s pre-pandemic retail boom. The British fashion brand ended its lease in 2021, two years into a slump that was sparked by anti-government protests and followed by the pandemic-era travel restrictions. Transformers restaurant took over the space from Burberry.
“We have seen more leasing activities, but they have not translated into higher rents,” said Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank.
Russell Street is in one of Hong Kong’s main shopping districts. Shops along the 250-metre long thoroughfare had to pay US$2,671 per square foot on average in annual rent as recently as 2018. That made it the world’s costliest retail strip, surpassing the Champs Elysees boulevard in Paris, Omotesando in Tokyo and Fifth Avenue in Manhattan, according to Cushman & Wakefield.
