Commercial Office

Savills outlined transition stages the market has to go through over the next few years.

Vacancies of CBD Grade A office buildings rose by 0.3ppts to 7.3%.

The decline in rents across the region is expected to decelerate this year.

Sublease availability in this city fell 24% during the quarter.

This is because most Grade B buildings are small-scale with limited leasable area.

As new operating models emerge, property valuers may need to be mindful of the way real estate is run when making valuations.

One-third of the total gross floor area of Singapore’s building stock is ‘green’.

Investors purchasing for sublease face tight competition from unabsorbed spaces in the market.

Rents only fell by 2% in Q1 2021.

It accounted for 31% of total rentals during the quarter.

There were 7 en-bloc transactions closed during the quarter.

Colliers expects increased market activity across assets higher up the risk curve. 

The downside is deemed limited as rents are still ~70% of the peaks seen pre-financial crisis.

The Sydney CBD prime equivalent yield range currently sits between 4.38% and 5%. 

The 1.9% decline in Q1 is a lot smaller than the 2.6% correction last quarter.

78% of the total area leased was greater than 50k sq ft in 2020.