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Chart of the Day: Massive office space deluge will hit the CBD in 2016
The good times will be over for office REITs.
A massive supply of prime office space will enter the Central Business District in 2016, according to this chart from Maybank Kim Eng.
Maybank Kim Eng noted that 2.2 million square feet (sf) of space will be available in the core CBD area, while another 1.5 million sf of space will be available in fringe CBD areas.
The report noted that rising supply will soon temper the steep rise in office rents.
"Sentiment has weakened. Consultancies have cut their rent forecasts. Although available space in the CBD remains tight with CapitaGreen and South Beach well-leased, there are reports of decentralisation by major CBD tenants,” said the report.
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