Grade A office vacancy climbs to 9.6% in July

JLL said it's the traditional low season for the office leasing market.

As several sizable spaces became available due to the traditional low season, overall Grade A office vacancy climbed to 9.6% in July.

Last month, vacancy was at 9.4%.

According to JLL, vacancy rates also edged up in all sub-markets, except in Kowloon East, where vacancy slightly dropped to 12.6% from 12.8% in June.

In Central, Wanchai, Hong Kong East, and Tsimshatsui vacancy rose from 7.9% to 8.2%, 9.0% to 9.5%, 8.9% to 9.0%, and 10.2% to 11.1%, respectively. 

In the next few months, JLL said leasing activities will likely improve. The expert added that if quarantine measures are removed completely, there will be a breakthrough demand in the office leasing market.

Meanwhile, the Grade A office market recorded net absorption of 217,000 sq ft in July, declining 0.1% MoM, due to the completion of a government building in Kai Tak.