Office Rentals To Keep On Rising

Office Rentals To Keep On Rising

According to a recent CBRE report, office rentals of ‘Grade A’ buildings in CBD increased by 4.3% year-on-year. The property agency announced: “We have seen that since there is a more stable political situation now, tenants have proceed with their expansion plans.”

Moreover, the agency affirms the total office supply slightly grows by 0.6% between Q2 and Q3 2014 up to 8.3 million sqm.

“The limited amount of space available in the most sought-after  locations next to mass transit stations means that rents are likely to continue rising.

“There is very limited choice, especially in Grade ‘A’ buildings, and this means that tenants need to plan ahead or they will not be able to secure premises that best match their requirements.”

“We expect vacancy rates to drop further as there is limited future supply, and we expect demand to increase which will result in an increase in rents; however, the growth rate of rents is expected to be lower,” the report noted.