Is now the best time in decades for Hong Kong F&B operators to buy their own premises?
By HK Lawyer AJ Halkes Barrister-at-Law
Is now the best time in decades for Hong Kong F&B operators to buy their own premises? This means stability, freedom from rent increases and has made people rich before; so why not do it now?
For years, ground-floor retail or low-floor commercial space for F&B was very expensive and scarce; that’s no longer the case. Not since the early days of Lan Kwai Fong in the 90s and just before the Staunton and Elgin Street boom has commercial property looked this affordable relative to market potential.
The LKF group under Alan Zeeman combined F&B operations with owned real estate, and a handful of (now wealthy) bold entrepreneurs followed that path. Today, with older landlords cashing out, bank financing still tight, and sale prices depressed in specific pockets, buying your own shop makes very good sense.
The same logic applies to customer-facing businesses with personal clientele, such as vets, doctors, dentists, or long-term speciality retailers, who can lock in a location effectively now, forever, while prices remain low.
Central office rents are edging up for the first time in three and a half years, but there is still a window as Wyndham Street, and beyond, are filling up with new Korean restaurants, bakeries, and revived concepts are snapping up the remaining spaces; so perhaps it is even a bit too late?
Smart operators are always pouring millions into fit-out and rent that disappears forever, but could (should?) include a property deposit as part of the capital raise. Investors would own/receive a dual asset, the business upside combined with real estate, that now has fairly predictable long-term value.
It may be the best time in decades to follow in the footsteps of giants like Marks & Spencer, IKEA, and Hong Kong’s own billionaires, by owning the square feet beneath your business. Because even if your concept struggles, the real estate is unlikely to.
No time like today to stop renting your future and start owning it.
If you need specific input regarding a strategic Hong Kong challenge or related legal matters in the HKSAR, you can always DM me and check out my profile at https://www.ajhalkes.com
HongKongRealEstate FandB CommercialProperty LanKwaiFong HongKongFNB BuyDontRent RetailInvestment hashtagHongKongBusiness Entrepreneurship PropertyInvestment LKF AlanZeeman FnBInvestment BuyingRealEstate
Adrian Halkes appointed to the eBRAM Panel of Mediators! By HK Lawyer AJ Halkes Barrister-at-Law Happy to share my appointment to the eBRAM Panel of Mediators, using its innovative, tech-driven...Read More
Geronimo in Lan Kwai Fong is closing By HK Lawyer AJ Halkes Barrister-at-Law Geronimo in Lan Kwai Fong is closing; a 13-year ago leap of faith and courage, when my...Read More
Hong Kong has many quirky food and coffee spots for tourists and locals By HK Lawyer AJ Halkes Barrister-at-Law Hong Kong has many quirky spots for tourists and locals. Upper...Read More
Early bird gets the bun at the Sing Fat bakery in Kam Tin By HK Lawyer AJ Halkes Barrister-at-Law EARLY BIRD GETS THE BUN at the Sing Fat Bakery in...Read More
Is now the best time in decades for Hong Kong F&B operators to buy their own premises? By HK Lawyer AJ Halkes Barrister-at-Law Is now the best time in decades...Read More
Bad reviews do not mean bad business By HK Lawyer AJ Halkes Barrister-at-Law Bad reviews do not mean bad business. Don’t let perfect be the enemy of good food and...Read More
AI already is “way better” than junior human lawyers in many areas By HK Lawyer AJ Halkes Barrister-at-Law This is the harsh truth: “You have law firms that are currently...Read More
Privacy matters a lot if you run bars, restaurants, fitness venues, shops and clubs. By HK Lawyer AJ Halkes Barrister-at-Law Privacy matters a lot if you run bars, restaurants, fitness...Read More
Once in a decade Jiao Festival organised by the indigenous Tang clan By HK Lawyer AJ Halkes Barrister-at-Law Hop up to Kam Tin if you have time for the once-in-a-decade...Read More
People just don’t care enough about bicycles in Hong Kong By HK Lawyer AJ Halkes Barrister-at-Law People just don’t care enough about bicycles. But they can be recycled by a...Read More
Lucky postbox number eight is a “non functional” part of Hong Kong‘s cultural heritage! By HK Lawyer AJ Halkes Barrister-at-Law Lucky postbox number eight is a “non-functional” part of Hong...Read More
There is a reason why manufacturers pricing products is a good thing; to stop retail gouging. By HK Lawyer AJ Halkes Barrister-at-Law We made these crisps ourselves in the 70s.....Read More
Why did COYOTE fail or just close, why has it not been snapped up? By HK Lawyer AJ Halkes Barrister-at-Law What went on? Why did COYOTE fail or just close?...Read More
On yer bike or it will be seized! Cycling – New Territories HK By HK Lawyer AJ Halkes Barrister-at-Law On yer bike or it will be seized! The New Territories...Read More
A small or big investment in an F&B business in Hong Kong may or may not be a good idea. By HK Lawyer AJ Halkes Barrister-at-Law One of the most...Read More
The decision that allowed me to embark on my first commercial business venture! By HK Lawyer AJ Halkes Barrister-at-Law By 1974, I had my first business and almost got thrown...Read More