Chart of the Day: Why the supply of new business park space is 'daunting'

Suppy is pegged at 1.45m sqft.

According to Nomura, FY16F DPU forecasts are chiefly based on the assumption that headline office reversion rents could remain flat in 2016F. 

Jones Lang LaSalle (JLL) projects Core CBD office supply at 1.45mn sq ft in 2016F, with Tanjong Pagar Centre (0.9mn sq ft) accounting for the bulk of it.

Here's more:

While we expect Core CBD office vacancy to expand as a result of more supply, we expect occupancy to remain above 94% by end-2016F, which should argue for an overall flattish rental market, in our view.

Compared to the office market, the supply of new business park space in 2014-16F appears more daunting (total of 0.5mn sq m, according to AREIT, vs. available stock of 1.55mn sq m as of end-2013).

 

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