Grade A office rents is projected to maintain an upward trajectory from 2019 to 2022, though more slowly compared to the early part of the rental recovery cycle, CBRE Research reported. “Prospects for the office market looks largely sanguine in the next couple of years; demand looks relatively stable while pipeline supply is moderating, all of which are positive indicators,” CBRE wrote. Grade A office rents jumped 14.9% in 2018, a 21% growth from 2017 Q2. Net absorption was at a total of 1.59 million sqft, whilst net supply was at 1.51 million sqft. The co-working market especially doubled in size to an estimate of 1.4 million sqft from 700,000 sqft in 2017. The market size of co-working operators is expected to surpass 2.0 million sqft in size by next year. Still, co-working spaces only account for 1.5% of the office market. “However, with new co-working facilities growing larger and larger, there has been a distinct shift in focus by co-working players towards larger enterprises to fill up their spaces,” CBRE wrote. Vacancy levels for Grade A or Core CBD segments also tightened to 5.1% from 6.2%.... Continue Reading