Cushman & Wakefield, the world’s largest privately-held commercial real estate services firm, in its latest Asia Office Forecast report, ‘14 for 2014 - Top Trends to Watch’, highlighted the healthy demand forecasted for office space across Asia in 2014. Cushman & Wakefield forecasted that the office demand is likely to reach 5.5 million square meter (msm) in all 30 major cities tracked within Asia Pacific.
Among the 30 cities in Asia, Tokyo is forecasted to see the highest office absorption in 2014, expected to be recorded 706,603 sm. It remains the region’s top location for office absorption and is followed by Bengaluru, India at 2nd position which is expected to witness 585,289 sm in 2014. The third city have the highest office absorption is Manila, Philippines with 557,418 sm of net absorption in 2014. Manila also ranks the first in the seven cities located in South East Asia. Despite the impacts from one of the severest natural disasters in recent times, Manila CBD and Off CBD market would witness 22% increase over the total absorption in 2013. Among the South East Asia, followed Manila is Jakarta with net absorption of 250, 838 sm. Given the projected positive performance of Indonesian economy and improving overall business climate, total office absorption in 2014 is estimated to increase 34% over 2013. With 37,161 sm and 27,871 sm projected net absorption in Hanoi and Ho Chi Minh city respectively, Vietnam is expected to see a positive trend in the net absorption of office space in 2014. While Hanoi will see a rise of approximately 15% in the total absorption, HCMC will be recording an approximate increase of 14% in 2014 over 2013. Market conditions will remain favorable to occupiers as supply continues in Ho Chi Minh and Hanoi. Stable supply, increased availability of space options and flexible leasing opportunities along with cheaper rents would help occupiers (both in Hanoi & HCMC) and the leasing activity could pick up as the economy gains momentum next year.
“The demand for commercial office space will strengthen going forward in 2014 and 2015. The oversupply situation, which most cities across the country are witnessing, will ease from 2014 onwards as economic conditions improve domestically and globally.” Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield commented.