Grade A Core CBD office rents mark fastest pace of increase since 2021
Rental growth accelerated from 1.4% QoQ in Q1 22 to 3.2% QoQ in Q2 22.
Rental growth for Grade A Core CBD offices accelerated from 1.4% QoQ in Q1 22 to 3.2% QoQ in Q2 22, marking the fastest pace of increase since Q2 2021.
With an increase in rents, the market also saw a tightening in vacancy.
In Q2, vacancy only increased by 4.4%, a lower percentage when compared to Q1 22's record of 4.5%.
According to CBRE, non-bank financial institutions and legal sectors drove growth for the Grade A office market in the second quarter.
Looking ahead, CBRE said Grade A Core CBD office rents are likely to grow 8.3% for the full year on the back of a back-to-office recovery and limited new supply pipeline.