Grade A office market logs net absorption of 397,700 sq ft in 4Q23

All submarkets returned to positive territory except for Greater Central.

The Grade A office market logged a net absorption of 397,700 sq ft in 4Q23, data from Cushman and Wakefield showed.

Amongst submarkets, Kowloon West contributed the most, registering a net absorption of 334,200 sq ft.

All other submarkets, except Greater Central, also returned to positive territory in 4Q23.

In terms of sectors, insurance accounted for the highest share of new leases by area, with 39% of the total, followed by banking and finance (14%) and public sector (13%).

Year-to-date up to mid-November, however, overall net absorption remained in negative territory at –267,100 sq ft, resulting in a 7.2% drop in office rents.