Office market logs positive net absorption at 56,200 in March

This stemmed from maintenance in tenant demand.

The Grade A office market posted a positive net absorption for the sixth consecutive March, at 56,200 square feet, amidst the social distancing measures that resulted in a quiet leasing market, according to JLL.

In its latest Hong Kong Property Market Monitor, JLL disclosed that the positive net absorption came after tenant demand was sustained. 

Grade A office rents declined by 0.2% month-on-month in March, with Central office submarkets recording a mild rental decline of 0.1%.

Overall vacancy rose to 9.4% in March because of new office supply, with Kowloon East remaining the highest vacancy rate amongst major office submarkets at 12.5%.

JLL Hong Kong Agency Leasing Head Alex Barnes said flexible spaces allow business access to fully-equipped offices without requiring a long-term commitment, making it a solution amidst market uncertainty or exponential business growth.