Steady economic recovery underpins growth in leasing and investment activity
Higher tenant enquiries and more frequent site inspections translated to stronger office leasing demand in the first quarter 2021, reported CBRE.
Regional class A net absorption rebounded from a low base to hit 9.1 million square feet. The decline in class A rents decelerated from 1.2 percent quarter-over-quarter (q-o-q) in the fourth quarter 2020 to 0.7 percent q-o-q, bringing the year-over-year (y-o-y) fall to 5 percent.
Retailers turned more active in looking for new leasing opportunities. Vacancy was largely unchanged across the region, while rents fell by 0.4 percent y-o-y, a slower rate of decline than the 2.1 percent y-o-y drop recorded in the previous quarter.
Warehousing demand remained upbeat, with Asia net absorption reaching 15.6 million square feet, the highest first-quarter total in recent years. Most major markets in the region continued to report low vacancy. Rents rose by 0.7 percent q-o-q.
Asia Pacific commercial real estate investment v