Vacancies Galore: Oversupply Takes a Toll on Rents and Occupancy Levels in the Asia Pacific Office Market
Property owners fortunate enough not to have become distressed sellers during the global financial crisis and ensuing global recession have had other challenges to endure. Not only did the values of their assets decline, but vacancy rates have increased as firms struggle and demand dwindles, which in part puts downward pressure on rents — the bread and butter of a steady income-producing property necessary for investors charged with meeting the needs of their retirees. While 2009 was especially glum regarding office vacancies and rental rates — and the pain of oversupply in Asia will continue to vex a number of markets in the near term — global economic stabilization is beginning to take hold, and this will help improve real estate owners’ bottom line.
Much of the dialogue during the global financial crisis has centered on commercial real estate transactions drying up due to a lack of credit availability and the understandable portfolio pa