They’re constantly registering double-digit rental reversions.
Pessimism in the global economic scene has not dampened the resilience of both retail and business park real estate investment trusts (REITs), with demand soaring to unexpected highs.
According to a report by RHB Research, demand for business park spaces has been strong as businesses are aggressively cutting costs.
“As of latest rent rates by CBRE, businesses would have saved up to c.43% by renting business park spaces, instead of office Grade B,” RHB said.
This also proves that business parks will be continuously sought after in the near-term. Retail REITs are also predicted to be the most resilient, registering high double-digit positive rental reversion.
Meanwhile, challenges remain for other subsectors, led by the struggles of office properties.
“We expect office rents to decline up to 15% this year, as weak demand continue to persist in the current pessimistic business outlook. Likewise, the uncertainty within the global economic climate has also impacted both the global and local tourism scene,” RHB Research said.
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