Bank of America cuts back on office space in Hong Kong amid impending new supply
- Bank of America will hand back around one and a half floors in Cheung Kong Center, where it has leased seven floors since 2012, sources say
- While the vacancy rate in the Greater Central fell by 0.3 percentage points in the fourth quarter of 2023, landlords cut rents by 3.1 per cent in response to new supply
US banking giant Bank of America plans to relinquish a big chunk of prime office space in Hong Kong as part of cost-saving measures in response to the headwinds facing the financial industry.
Bank of America will hand back around one and a half floors in Cheung Kong Center, Central, to the landlord, CK Asset Holdings, where it has leased seven floors since 2012, according to sources familiar with the matter.
The bank will relocate the rest of its back office operations to Kowloon Commerce Centre in Kwai Chung.
“The move aligns with the prevailing cost-cutting trend in the industry,” said an industry source. Bank of America, which has support staff in Kowloon, declined to comment.
Several banks and financial firms have opted to downsize their office space or relocate to less expensive buildings in the face of muted financial activity in the city.
Last year, turnover on the city’s stock market declined 16 per cent to HK$105 billion (US$13.4 billion), according to Hong Kong stock exchange data.
