Rents for Core CBD Premium and Grade A offices rise to $11.30 psf
The Q3 figure surpasses the pre-pandemic high of $11.27 psf.
The average rent for Core CBD Premium and Grade A offices jumped to $11.30 per square foot in Q3, surpassing the pre-pandemic high of $11.27 psf which was recorded in Q1 of 2020.
Colliers attributed the price growth to the increase in service changes and tight vacancy.
In Q3, the market recorded net absorption of office space at around 3,200 sq ft, much lower than Q2’s record of 159,000 sq ft.
Leasing demand was broad-based as companies adopted a more conservative approach in their hiring and expansion plans, in light of looming geopolitical and macroeconomic uncertainties.,” Colliers said.
Looking ahead, Colliers said rental growth in Core CBD Premium and Grade A office segment will continue for the rest of 2022,” underpinned by tight supply and rising operating expenses.”
Colliers, however, warned that global uncertainties could influence the rate of growth in the medium to long term.