Grade A office rents to jump 7% in the next 12 months

Will tenants afford it?

According to Colliers International, grade a office rents will increase by 7% in the next 12 months. Office rents in Central are going to grow more strongly, in the order of 8%, as the rental premium for top-tier buildings is expected to increase. 

Colliers believe small-to-medium-size financial tenants will be prepared and able to pay this premium for better-quality premises in Central. The growth of rentals in decentralised business districts, such as Kowloon East, is expected to slow to 5% in the next 12 months. Most of their occupiers are small-to-medium enterprises, and after a two year period of rapid growth rentals are currently edging towards the maximum they can afford.