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Office Space

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Submitted By hizo0212
Words 526
Pages 3
Appendices:
We have taken into consideration the data provided to us in Table 2 (Employment in Hong Kong between 1984 and 1993), Table 4a (Average rentals of grade A office space in Hong Kong), Table 4b (Rentals for prime office space in other cities, Table 6 (Office Portfolio of Hong Kong Land Holdings Ltd., Table 7a (Private offices for all grades – supply and forecast supply by district and Table 7a (Grade A Office in Central – supply and forecast supply).
Disclaimer: We have forecasted the demand and price based on the information available to us and have not taken into consideration additional data that maybe available to the general public.
Appendix A: Forecast of Demand for Grade A office space in Hong Kong Central for Hutchison Whampoa Ltd
The Vacancy rate of Grade A offices in HK Central in 1992 is 86,000 Square meter i.e. 7.3% and we used this data in combination with the incremental supply data available to calculate the total Supply space. ð Total Supply for Grade A offices in HK Central for 1992 = 86,000 Sq. Meters / 7.3% = 1,178,082 Square meters. ð Total Demand for Grade A offices in HK Central = 1,178,082 Square meters x 92% = 1,092,082 Square meters. 92% is derived from subtracting the 7.3% from 100%.
The table below contains the calculated values for Total Supply and Demand based on the approach described above:
Year
1988
1989
1990
1991
1992
1993F
1994F
1995F
1996F
1997F
1998F
1999F
Vacancy in Square Meters
(2nd paragraph in page 14)
86,000
Vacancy Rate
(Data for 1988 -­‐1992 from Table 5)
0.5%
5.8%
5.0%
6.8%
7.3%
GDP
(Average GDP is approximately 5% based on data provided in table)
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
Additional Space (m² ) (Data for 1988-­‐1999F taken from Table 7b)
87,800
72,300
50,200
46,900
94,700
7,900
25,200
46,700
85,400
81,700
Supply Space (m² )
913,982
986,282
1,036,482
1,083,382
1,178,082
1,185,982
1,185,982
1,185,982
1,211,182
1,257,882
1,343,282
1,424,982
Demand Space (m²)
909,412
929,078
984,658
1,009,712
1,092,082
1,151,381
1,210,680
1,269,980
1,330,539
1,393,433
1,460,597
1,531,846



Appendix B: Forecast of average Rental price per month per Square meter for Grade A office space in Hong Kong Central for Hutchison Whampoa Ltd
The average rental revenue in 1992 for Grade A offices in HK Central is given as HK$ 483.6 and we used the GDP growth of 5% to estimate the subsequent years’ average rental prices.
The table below contains the calculated values for Average rental price based on the approach described above:
Year
Average Rental Price (in HK$ per month per Square Meter)
1992
$483.60
1993
$507.78
1994
$533.17
1995
$559.83
1996
$587.82
1997
$617.21
1998
$648.07
1999
$680.47


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