Chanel Signs Largest Lease Agreement Since Pandemic for New Retail Space in Hong Kong — Retail Bum

Chanel has signed a lease in Hong Kong’s prime shopping district Causeway Bay to open a two-story store at Capitol Centre.

The 19,000 square-foot retail space, formerly occupied by Forever 21 and Victoria’s Secret, is located across a major shopping street next to Hysan Place, making it one of the most visible commercial spaces across the city.

The store location, which will serve as an outlet for Chanel Beauté, will be Chanel’s fifth location in Causeway Bay. The brand also operates stores in nearby Lee Gardens, Hysan Place, Times Square, and the Sogo department store.

While Chanel has not disclosed the total rent it will be paying for the space, South China Morning Post estimates that the French luxury house will be spending somewhere between HK$3 million to HK$4 million (approx. $382.6 million to $510 million) monthly — marking the largest retail lease to be signed since the pandemic.

The announcement follows Hong Kong’s reopening of its borders to tourists after strict COVID-19-related lockdowns and social unrest. The move has led to a significant resurgence in inbound tourism, rising from one million in January to three million in April, recent data from the Hong Kong Tourism Board indicates.

Rebound in tourism is expected to contribute to rent increases in the Causeway Bay area in the range of 5% to 10% in the first half of this year and another 5% to 10% in the second half, according to Rickey Chan, managing director of local property agency Dorbo Realty.

Originally published at https://retailbum.com on June 6, 2023.