Commercial Office

Q3 Grade A office rents increased 0.7% for the first time in five quarters.

Rents declined in all major submarkets while Kowloon rents proved more resilient.

But Colliers says transactions may pick up in Q4.

And vacancy rate hit 3.3%.

JLL reveals the reasons behind this optimism.

Shibuya only recorded a minor correction of 0.5% in Q3.

Q3 marked the eighth consecutive quarter of negative net absorption.

Co-working operators expand their portfolios as demand for flex spaces grow.

Demand is expected to come from growth sectors including fintech and healthcare.

Landlords had to become creative to meet their tenants' changing needs.

Rents of Grade A1 offices in the area grew 3% from May-July 2021. 

Less than 20% of the city's office supply obtained green certifications.

Compass Offices and Regus both expanded their spaces recently.

It surged 726bps to 12% in Q2 2021.

Rents in this area fell 5.6% in Q2.

All major submarkets in the city recorded positive net absorption during the quarter.