Hong Kong landlords urged to retrofit offices for AI tenants
According to analysts, commercial property owners in Hong Kong might have to allocate funds for building enhancements to avoid losing tenants due to the requirements of artificial intelligence. Specialists emphasize the importance of energy resilience, connectivity, and advanced technological frameworks to align with standards of the AI age. Data from Knight Frank reveals that by 2030, almost 66% of private offices in Hong Kong will exceed 30 years in age. Additionally, a 2022 estimate from JLL suggested that roughly 20% of the city's older structures could become obsolete, suffering from reduced value and efficiency.
Key facts
- Hong Kong commercial landlords may need to invest in upgrades to retain tenants amid AI demands.
- Experts cite energy resilience, supply, connectivity, and technological infrastructure as key requirements.
- Nearly two-thirds of private offices in Hong Kong will be over 30 years old by 2030, per Knight Frank.
- JLL estimated about a fifth of Hong Kong's ageing buildings face potential obsolescence.
- The upgrades are needed to bring buildings to an appropriate standard in a world of AI.
- Declines in both value and efficiency are expected for obsolete buildings.
- The analysis comes from SCMP article citing analysts and property firms.
- Landlords may need to refurbish or convert commercial real estate for AI technology.
Entities
Institutions
- Knight Frank
- JLL
- SCMP
Locations
- Hong Kong