Chart of the Day: Around 4.3 million sqft of office supply in the works
The market will face a huge supply coming on board in 2022.
This chart from EDMUND TIE shows that the total office supply pipeline from Q2 2020 to 2024 is estimated around 4.3 million sqft or 905,000 sqft per anuum, with most of the supply expected to be completed by 2022.
In 2021, the pre-committed rates for most buildings in the core business district (CBD) are healthy. For example, CapitaSpring currently has a pre-committed rate of around 35%, comprising tenants such as The Work Project and J.P. Morgan.
“However, the market will have to grapple with the huge supply coming on board in 2022 such as Central Boulevard Towers (NLA: 1.3m sq ft) and Guoco Midtown (NLA: 650,000 sq ft),” the report stated.