Luxury restaurant Lawry’s wins significant Rent Reduction
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High-end US restaurant Lawry’s The Prime Rib, will pay 80 per cent less rent for its new location than the previous tenant who vacated the premises three years ago.
The leased 6500sqft venue is located on the third floor of The Galleria in Central on the corner of Queen’s Road and Ice House Street, with a HK$150,000 (US$19,155) per month rental, or HK$23/sqft.
News of the rent deal was broken by a local Chinese-language news media outlet and has not been verified. However it appears to suggest the reduction reflects an overpricing of the previous tenant’s deal rather than a true reflection of the decline in retail rents in premium Hong Kong retail strips, especially given the site has been empty for three years.
The restaurant Lawry’s is considered a heritage dining brand with premium locations in several US cities, as well as a presence via franchisees in Singapore, South Korea, Taiwan and Japan. A point of difference is that food is taken to diners’ tables on silver carts as part of a theatre experience.
Questions & Answers
Q.What is the new monthly rent Lawry’s will pay for its Central location?
What is the new monthly rent Lawry’s will pay for its Central location?
Lawry’s The Prime Rib will pay HK$150,000 (US$19,155) per month for its 6500sqft venue. This equates to HK$23 per square foot for the third-floor space in The Galleria.
Q.How much less rent will Lawry's pay compared to the previous tenant?
How much less rent will Lawry's pay compared to the previous tenant?
The restaurant will pay 80 per cent less rent than the previous tenant at the same location. This suggests the prior deal was overpriced, rather than reflecting a general decline in Hong Kong retail rents.
Q.What suggests this rent deal might not reflect a wider trend in retail rent reductions?
What suggests this rent deal might not reflect a wider trend in retail rent reductions?
The article suggests the reduction reflects an overpricing of the previous tenant's deal. This is especially relevant given the site in The Galleria has been empty for three years.
Q.Where is Lawry's The Prime Rib located in Central?
Where is Lawry's The Prime Rib located in Central?
Lawry's The Prime Rib is located on the third floor of The Galleria. This building is situated on the corner of Queen's Road and Ice House Street in Central.
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