Demand for Grade A office space in the CBD increased significantly in 2021 and was led by tech companies such as Tik Tok / Byte Dance, Amazon, LinkedIn and Fintech companies, as well as asset / wealth management companies. These sectors accounted for around 70% of new leases in 2021. Shipping was also a reasonably strong sector, as were the insurance and pharmaceutical sectors. Companies that were forced to relocate due to the redevelopment of their building also boosted demand.
Net positive take-up was around 800,000 sq ft last year, compared with just 200,000 sq ft in 2020 (which was predominantly just relocation activity to similar sized space, so no increase in net absorption).
The ultra-high-end properties are still commanding effective rates in excess of $11.00 per sq ft per month.