The HKSAR government owns all land in Hong Kong. Rights to occupy, develop and use land are granted to lessees by the government. For doing business in Hong Kong, there are 2 kind of premises that you may want to lease, namely, business premises and industrial premises.

On Hong Kong Island, the central business district (CBD) is from Central expanding eastwards to include Wanchai and Causeway Bay. Many head offices of banks, large enterprises, foreign companies set the offices there. Other major office areas include Quarry Bay on Hong Kong Island and Tsim Sha Tsui in Kowloon. Transport connections between these areas and the CBD are easy and convenient.

Monthly Rental of Private Offices in Selected Districts in Hong Kong

Average Selling Price (per Sq. Meter)
District	Grade A	Grade B	Grade C
Sheung Wan	-	-	US$5,026
Central	US$9,943	US$6,904	US$7,780
Causeway Bay / Wan Chai	US$10,838	US$5,375	US$6,512
Tsim Sha Tsui	US$6,762	US$5,656	US$5,644
MongKok / Yau Ma Tei	-	US$5,781	US$4,985

Average Monthly Rent (per Sq. Meter)
District	Grade A	Grade B	Grade C
Sheung Wan	US$41,9	US$34.9	US$29.3
Central	US$72.6	US$54.1	US$40.9
Causeway Bay / Wan Chai	US$62.8	US$41.2	US$36.3
Tsim Sha Tsui	US$42.5	US$37.8	US$35.9
MongKok / Yau Ma Tei	US$38.8	US$34.4	US$33.5

Source: Property Market Statistic (3rd Quarter 1998), Rating and Valuation Department.

Grade A - modern (or up to modern standards), high quality finishes; generally spacious lobbies; effective central air-conditioning; good lift services; good management.
Grade B - plain, good quality finishes; adequate lobbies; central or freestanding air-conditioning; adequate lift services; average or above average management.
Grade C - generally small, or cramped sites; basic finishes; basic lobbies; generally without central air-conditioning; barely adequate or inadequate lift services; minimal to average management

There are mainly three types of industrial buildings in Hong Kong:

1. Flatted factories
   For general manufacturing process, normally intended for sale or lease
2. Industrial/office premises
   With floor space in developments with planning permission and lease modification for industrial/office use, and is certified for possession as such
3. Specialized factories
   Primarily built for the purpose of specialized manufacturing process, usually for occupation by a single operator.

Leasing procedures are straightforward and have no restrictions on foreign companies in Hong Kong.

To lease offices or industrial building, you need to negotiate with the landlord about the principal terms of the lease. The rental agreement is typically two or three years with an option to renew. Once the terms are agreed, the landlord will issue you a Letter of Offer. This letter has to be counter-signed and you need to return it within a specified period with a security deposit (usually two to three months' rental, plus management service charge and estimated rates).

A tenancy agreement will be signed within a specified period and will be registered by the landlord at the Land Registry. This agreement covers all the respective duties and obligation of landlord and you as a tenant. Therefore, you need to familiar with the rules set in the agreement

Besides paying rent (plus the security deposit), you may also need to pay other office occupancy costs in Hong Kong:

Legal fees for processing tenancy agreements,
Property agency fees - usually charged at one month's rent;
Management service charges - paid in advance and commonly covers security, air-conditioning, common areas cleaning and other building services. Service charges can be in the region of HK$32-65/m2 (US$4-8/m2) per month;
Government rates - 4.5% of annual rental value, payable quarterly in advance;
Land rent.