Why R&D labs in Hong Kong are scarce
The demand for medical office buildings in Hong Kong is high, but hard to get.
The demand from the healthcare sub-sector for medical office buildings in Hong Kong is high, according to a CBRE report.
The typical size requirement for these spaces are relatively small at 2,000 square feet and below. Large tenants such as hospital clinics can occupy multiple floors.
However, acquiring space in Hong Kong is challenging.
For R&D labs, investors have to deal with government ownership of the Hong Kong Science Park, where space is not available for sale. The Science Park hosts advanced R&D facilities, and can accommodate approximately 150 biomedical companies.
There are opportunities in converting existing industrial buildings, however there are strict requirements that need to be followed, including floor loading, and power and water supply. Thus conversions can only be done for laboratory testing use, and not for high-end R&D.
Over the recent years, medical companies have chosen to convert industrial buildings or acquire land for purpose-built medical facilities.