Hong Kong’s headquarters economy is driving a recovery in its commercial property market. In 2025, the city saw net absorption of 2.1 million square feet of office space, the highest since 2018, says CBRE. Central Hong Kong led this rise with 234,800 square feet absorbed in the last quarter, the best since 2015. The total absorption for the year in Central reached 496,000 square feet – the strongest annual figure since 2007. Along with this leasing growth, overall office rents fell by only 2.9 percent year on year, the smallest drop since 2019. These positive signs came as the number of locally registered companies hit a record 1.56 million by the end of 2025, up 96,609 from the previous year. About 195,343 of these were new or relocated firms, while 15,586 were new foreign companies setting up in Hong Kong. Eric Tsang from Colliers said, "The [headquarters economy] reinforces demand for premium office space, especially well-located, high-quality buildings that support regional management, capital markets and professional services functions." He added, "This has helped stabilise leasing across the office market and created renewed interest in prime and quality office assets, even as the broader office sector continues to adjust." The headquarters economy is clearly powering a strong rebound in Hong Kong's office real estate scene.