Vacant spaces in large office buildings feared to jump by over 600,000 sq ft

If commitment remains the same.

According to Knight Frank, while they think there is potential for further upside in rents in 2H13F on account of the temporary shortage of leasing options in the mid-sized floor plate segment, they believe rents could start to soften again in 2014 and maintain their view of an overall flattish trend for office rents between now and 2015F because:

"While the mid-sized floor plate segment may be seeing a temporary shortage, the available space in the large-sized floor plate segment looking for tenants is significant, especially when we expect leasing demand from banks and financial institutions to remain modest. By 1H14, with the completion of Asia Square 2 later this year, the amount of vacant space in the large-sized floor plate segment could increase by over 600,000 sq ft, assuming commitment remains unchanged," Knight Frank said.

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