Grade A office leasing surge 70% YoY in Q2

A total of 964,500 sq ft was leased during the period.

Grade A office leasing surged 70% year-on-year (YoY) in the second quarter of 2024 fueled by new leasing activity from the insurance, professional services, and banking & finance sector, Cushman & Wakefield reported.

Of the newly leased areas, 23% were occupied by the insurance sector, followed by 22% in the professional services sector, 20% in the banking & finance sector, and 17% in the consumer products & manufacturing sector.

The Grade A office market gained a positive overall net absorption of 318,000 sq ft, bringing the total net absorption for the H1 2024 to 582,200 sq ft.

Kowloon East and Greater Central account for the biggest shares at 33% and 23%, respectively. 

In addition, the two newly completed office building projects in Greater Central and Kowloon East have increased the overall vacancy rate to 19.8%.

Meanwhile, the overall Grade A office rental level decreased by 1.5% quarter-on-quarter (QoQ), and fell by 2.1% for the year-to-date (YTD).

Cushman & Wakefield maintains its initial forecast of a 7% to 9% drop in office rents in 2024 as new supply will need some time to be absorbed.