Supply Creates Opportunity For Tenants
Insights & recommendations
- We expect that leasing demand delayed by COVID-19 will materialize in H2 2020, as the pandemic subsides.
- With seven buildings scheduled for completion in 2020, in all three major districts, vacancy is likely to rise.
- We recommend tenants seek space for relocation, expansion or consolidation into new headquarters locations on favorable terms.
- We also recommend tenants restructure leases with landlords to secure more favorable long-term lease terms.
Q1 2020 highlights
Despite COVID-19, the demand for CBD offices in Q1 2020 was sustained. Meanwhile, the net absorption in GBD and YBD decreased due to relocations out of the district.