Flight-to-quality remains key to occupiers
As COVID-19 disruptions recede, the office market witnessed a pickup of momentum including an increase in leasing enquiries and inspection activities, yet commitment in leasing deals remained slow in Q2 2022.
Key highlights
- Overall vacancy continued to climb and reached 11.2% in Q2 2022
- New letting demand from net lettings remained relatively weak, resulting in a net absorption figure of –176,300 sq. ft.
- Overall Grade A office rents fell by 0.1% in Q2 2022, bringing the YTD drop to 1.5%
- Decentralisation is favoured by cost-saving tenants
