Stable Demand and Moderate Rental Growth in 2021
Vacancy rose due to new supply in Q1, but the stable economy and recovering demand still drove rising rents.
2021 is still a landlords’ market due to the limited available supply. We expect the rent to rise at a moderate rate and vacancy to drop.
2024 should be a watershed in supply and demand, turning the market to a tenant-oriented market. We recommend:
- Tenants renew their leases now and adopt flexible space designs or lease flexible workspace to accommodate expansion plans while lowering capital expenditures.
- Landlords should begin renewal negotiations with favorable lease terms, while upgrading building facilities to secure stable occupancy and avoid being undercut on rents due to the substantial supply.
