Office property market slowing in Q2

DTZ reports at the average office occupancy rate for the second quarter of this year saw a dip of 0.2 percentage point.

Office rental prices have also been flat - suggesting that the market is resistant to rising prices.

It said the slide was spurred by tenants seeking cheaper locations when their leases expired.

The report showed that businesses have been looking to alternative locations like business parks, and temporary office locations to tide them over until new office locations open up in 2010. At the moment, business park rentals cost about half, or a third of what can be found in the CBD.

Some companies may find it more cost-effective to stay in these alternative locations, but DTZ believes there will still be demand when the new supply comes on-stream.

Source DTZ via Channelnewsasia.
Image Source via Channelnewsasia.
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