CBD, Grade A office rents grew 1.8% QoQ in Q2

Rents were at $11.10  per square feet in the second quarter of 2022.

Rents of Core CBD Premium and Grade A offices went up by 1.8% quarter-on-quarter in the second quarter (Q2) of 2022, where it experienced four consecutive quarters of increase at $11.10 per square feet, Colliers said.

Meanwhile, leasing demand for core CBD premium and Grade A office posted a net absorption of 159,000 square feet during the quarter.

The vacancy rate for Core CBD Premium and Grade A office segments reached 3.4% in the period, Colliers said.

Average capital values for Core CBD Premium and Grade A office is still flat at $3,000 per square feet.

Commenting on this, Bastiaan van Beijsterveldt, executive director and head of occupier services at Colliers, said the rents experienced growth due to strong demand from technology, financial and energy sectors.

READ MORE: Prime logistics posts highest rental growth amongst industrial segments in Q2

“Occupiers are focusing on prime office premises in the core CBD locality, where newer and higher-quality buildings are concentrated,” he said in the report.