Asia: Occupier markets weaken amid slowing economic growth

Office leasing demand remained weak in the third quarter 2019 due to continued slow global economic growth and the ongoing U.S.-China trade conflict, reported CBRE Research. The large volume of new supply, slow pre-leasing and lack of new sources of demand ensured rents declined by 0.2 percent quarter-over-quarter.

Tech firms continued to drive office demand, but most occupiers turned more cautious and shifted their focus to lease renewals. However, space requirements were noticeably smaller this quarter. Most large tech occupiers have already completed major expansionary moves and are now only leasing space to house specific functions or teams such as research and development. Leasing activity mainly involved mid-sized firms and nontraditional subsectors such as fintech, gaming and entertainment.

Following rapid expansion in previous quarters, flexible space operators are now focusing on increasing occupancy in existing centers. Some international operators have turne