The rental market for office buildings in Kowloon is experiencing a polarized development, according to Huang Haobo, Senior Manager of Commercial Property Services at Cushman & Wakefield Hong Kong. This trend is evident in the rapid rise of West Kowloon, particularly around the West Kowloon Station area, which has attracted numerous cross-border financial institutions and large insurance groups due to improved transportation links and the influence of a landmark project. Conversely, the supply of office buildings in East Kowloon remains abundant with vacancy rates persistently high at over 20%. In West Kowloon, landlords are engaging in a "defense battle" by offering various 'subsidies for renovations' to entice tenants to relocate to the area, especially for international firms and insurance groups. Numerous large insurance companies, including AXA, Manulife, and FWD, have signed substantial leases in the area. Notably, Swiss financial giant UBS has confirmed its move to the IGCC Tower as its new headquarters, significantly boosting confidence among global enterprises in the West Kowloon area. In contrast, East Kowloon is seeing a scenario characterized by limited new cross-border tenant activity. Huang Haobo notes that major enterprises, including many insurance companies, are now moving into upgraded office spaces within their original districts rather than relocating. He explains that while there has been a significant reduction in the gap between office and industrial rents, this has made it more attractive for companies to relocate to newer buildings. Landlords in East Kowloon have responded with flexible financial schemes to reduce tenants’ upfront costs, including direct funding for renovations, customizable workspaces, and retaining existing decor for new tenants. Overall, the rental market for office buildings in Kowloon remains divided, with landmark projects in West Kowloon attracting more global firms, while East Kowloon landlords focus on appealing to tenants looking for more cost-effective options for upgrading their office spaces.