Income Property: Increased Rents and Decreased Vacancies Are Making the Asia Pacific Office Market Landlord-Friendly Again
With the days of the quick flip and record-setting asset valuations a thing of the past in most regions, many investors are rediscovering the income-producing benefits of real estate over the long term. With fundamentals continuing to improve throughout most of the Asia Pacific region, and office occupancy and rental rates both on the rise, many prime office markets are now shifting from tenant-friendly to landlord-friendly. As a result, some investors have now focused more on core assets with steady, reliable income streams in well-leased buildings. However, the high cost of prime office property in some major markets, as well as a shortage of grade A quality space to purchase, has led some investors to value-added and opportunistic plays.
The Asia Pacific prime office market bounced back resoundingly in 2010 and is continuing its comeback in 2011. According to CB Richard Ellis’ March 2011 Global Office MarketView, overall office rents rose 8.1 pe