Grade A office

Grade A office vacancy has reached a record high of 13.8 million sq ft.

Office market growth lowered overall vacancy to 13%.

An insurance firm recently leased 53,600 sq ft at AIRSIDE in Kai Tak.

All submarkets returned to positive territory except for Greater Central.

The subdued demand led to a 5.3% decrease in overall rents.   Demand for Grade A offices remained subdued, leading to a 5.3% decrease in overall rents by the end of November. 

The increase was partly due to the completion of S22 in Wong Chuk Hang.

Net absorption was at -29,000 square feet.

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

Vacancy rate in Central rose from 7.6% to 7.9%. 

Limited inspection activity caused the decline in leasing demand.

It is the eighth consecutive month that the office market had positive take-up.

The unchanged rate was on the back of the completion of the new supply.

This continues a four-month streak of positive net absorption. 

This is coming from a 135% gap in 2015 and a peak of 173% in 2017.

CBRE reported office and retail sectors are likely to be the biggest gainers.

This is the first time since July 2019, JLL said.