Resilience, reinvigorating and the rush to quality
Highlights from the report include:
- Tenants concerned about rising fit-out costs may prefer renewing existing leases over costlier relocations, however demand remains strong for premium quality office spaces in prime locations, as occupiers prioritize future-proofing their portfolios through employee-centric designs and sustainability features.
- With an estimated 6 million sqm of new office space set to be delivered by the close of 2025, starting lease negotiations early will be key for mitigating cost pressures, securing high-quality premises, and adapt to evolving market conditions.
- Early mover advantage is anticipated to peak in 2025 as the cycle matures, making this year the optimal window for investment. Markets like Tokyo with robust rental growth and low vacancy continues to draw strong investor interest.