CBD Grade A office gross rents to grow 2% in 2023

If interest rates remain at pre-pandemic levels, rents will likely grow 11.1% YoY.

Gross rents of Grade A offices in the Central Business District (CBD) will grow at a slower pace in 2023, by 2% YoY, according to Savills.

In 2022, Savills expect gross rents to grow 3% YoY. 

Had there been no geopolitical tensions and if interest rates remain at pre-pandemic levels, Savills believes that gross rents growth for 2023 will likely be 11.1% YoY.

Towards the end of 2023, Savills said the market will begin to “feel the pressure by multinational tenants of their need to be located only in Green-rated buildings.”

“Owing to the relative dearth of new supply, rents in the highest sub-grades would be able to stay firm as most of them have the highest Green mark rating,” Savills commented.