Rental growth in Core CBD Grade A office market to slow in 2023

CBRE expects rents to only increase by 1.0% YoY.

Real estate expert, CBRE, has cut down its 2023 rental growth forecast for the Core CBD Grade A office market to 1.0% YoY, taking into account possible weaker demand conditions and economic growth.

CBRE's previous forecast was 4.0% YoY to 5.0% YoY.

On the flip side, CBRE said the softer market conditions in 2023 can be an "opportune time for occupiers to reset and reassess their office requirements."

In 2022, the market recorded a full-year growth of 8.3%, surpassing the rental growth of 3.8% in 2021.