The downfall of office rental rates continues through the quarter. An annual record showed that there is a 16% decline from last year. The quarterly report displayed a 4% decline.
The falling rates are expected to be seen well into the quarter and end of the year. This means there will be more vacancies in the commercial buildings and more incentives being offered by landlords to retain the tenancy contract.
Q2 2019’s commercial rental rates have remained unchanged for all quality specifications despite the lower demand for commercial spaces.
Although the rental rates for Grade B which is shell and core units have lowered by an estimate of 7% since Q2 2018. The lower quality buildings are seeing a decline between 8% and 13% annually.
To retain tenancy for commercial spaces, landlords are providing incentives and discounts upon renewal of the tenancy contract.
Information Credits: Asteco