Cheung Kong Center II, a recently completed office tower in Hong Kong's Central district, is showing signs of a significant rental recovery as leasing activity intensifies. The 41-storey building, developed by CK Asset Holdings, the property arm of billionaire Li Ka-shing’s family, has begun commanding rents exceeding HK$100 per square foot, narrowing the gap with some of Central’s most sought-after office buildings.
The tower, which opened in 2024, initially experienced sluggish leasing amid one of Hong Kong’s most challenging office market environments in recent years. At the start of 2026, occupancy stood at roughly 20 percent, according to Ado Fung, chief operating officer for advisory services at CBRE Hong Kong. However, by June, the occupancy rate had climbed above 50 percent, with further leasing momentum observed throughout July. Some agents suggest the actual figure may be even higher due to ongoing weekly leasing transactions.
Recent lease deals indicate a strengthening of rental rates in the tower, with prices surpassing HK$100 per square foot. This level approaches rents seen in prime Central buildings such as One and Two International Finance Centre (IFC), where rents have exceeded HK$130 per square foot and posted growth of over 20 percent, according to property consultancy JLL.
Market participants view this trend as a validation of CK Asset’s strategy to maintain rental levels during the downturn rather than aggressively discounting to boost occupancy. Sam Gourlay, head of office leasing advisory at JLL Hong Kong, noted the building’s improving occupancy coincides with a broader trend of rental increases in grade A1 and other select properties in Central. He emphasized that demand remains concentrated in premium office spaces, particularly newer developments.
Fung attributed part of the stronger leasing performance at Cheung Kong Center II to a tenant mix that now includes a relatively high proportion of mainland Chinese companies alongside an increasing presence of technology firms. The building’s harbour views and availability of smaller office suites have also attracted tenants seeking central locations with flexible space options.
Despite the recent upswing, leasing activity had faced earlier challenges. Some mainland tenants reportedly postponed leasing decisions amid political sensitivities linked to CK Hutchison’s proposed sale of its Panama ports assets to a BlackRock-led consortium, attracting criticism from Beijing. Sources familiar with leasing negotiations indicated that such concerns have since diminished. Additionally, modifications to some subdivided floors improved the building’s office layout, further supporting leasing interest.
The positive trend in Cheung Kong Center II reflects a wider recovery in Central’s office market. Data from property agency Centaline Commercial shows a 78 percent year-on-year increase in office leasing transactions in Central during the first half of 2026, with 119 deals recorded.
CK Asset Holdings did not immediately respond to requests for comment on the leasing progress and rental performance at Cheung Kong Center II.