Landlords turn to semi-retail tenants as office vacancy pressure mounts

They have also been offering attractive leasing packages to secure tenants.

Vacancy pressure may compel office landlords to adopt a favourable attitude towards semi-retail occupiers on office floors, according to CBRE.

In line with this, CBRE observed that landlords have been offering attractive leasing packages such as rent-free periods and CapEx subsidies to secure existing and new tenants.

In Q3, office demand improved due to banks and wealth management firms, whilst the retail and wholesale sector has increased its share of leasing activity in recent months.

Additionally, alternative sectors that enhance tenant experience are gaining popularity in office buildings.

Meanwhile, CBRE said demand for ESG and green buildings has been dipping as tenants prioritise cost management and consolidation.