Office rental growth hits decade-low in October

Rents have dropped 1.6% MoM to $74.3 per sqft.

Overall Grade A office rents dropped by 1.6% MoM in October, the sharpest monthly fall recorded in more than 10 years, according to a report by real estate management company JLL.

Due to a subdued leasing demand, accounting to increased rate of vacancies, rising above 3% for the first time since March 2015, overall Grade A office rents have dropped to $74.3 per sqft in October, whilst Central’s Grade A office rents plunged 2.3% to $122.1 per sqft, recording the largest fall for the month.

The Central office market recorded negative net absorption of 101,100 sqft in October as persisting uncertainty contributed to a 49% MoM drop in new lettings. Some landlords are facing difficulty in backfilling whole floors left by tenants relocating out of Central due to a lack of expansionary activity within the market, said the report.