Modern warehouse vacancies remained unchanged with a number of large-scale renewals, while general warehouse landlords continued to suffer.

• With the Mainland economy and trading performance rebounding strongly, coupled with a lower base of comparison, we saw a much milder decline in the trading and logistics sector in Q4.
• Modern warehouse landlords proved to be more pragmatic than their general warehouse counterparts with a number of large-scale renewals helping to stabilise both rents and vacancies in Q4, while the general market continued to face tenants downsizing or ceasing operations altogether.
• Both investors and developers were again keen to acquire industrial premises / sites for their respective needs, with industrial sales volumes resembling the previous quarter, while prices remained generally flat as sentiment gradually returned.
• Looking into 2021, while the virus situation is difficult to foresee, a forecast global logistics revival, a potential local retail market rebound, as well as newly completed infrastructure should all contribute to brighter local logistics prospects.