Chart of the Day: Don't be too worried about the dreaded office space glut

Vacancy will remain manageable, says CBRE.

Much alarm been raised over the massive supply of prime office space slated to flood the market this year, but analysts at CBRE believe that the overall volume of future office supply is not excessive.

In a report, CBRe noted that there are no other Grade A CBD Core supply expected beyond 2016, and that the market might even face a shortage from 2018 to 2021.

"With typical project development period of up to four to five years, it is quite likely that the market may face a shortage of CBD office developments. In the longer term, concerns around the high volume of new CBD office supply in 2016 will likely ease as occupancy is expected to firm up and there is a greater visibility on the absence of new supply towards the close of the decade," said the report.

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