A Cushman & Wakefield Research Publication - 2017 Global Forecast

GLOBAL

AMERICAS

APAC

APPENDIX

EUROPE

SUPPLY & DEMAND This growth potential in the BFSI and technology industries, along with other office-using sectors, bodes well for the office sector. We estimate that this could translate to a record annual average of over 100 msf of new office space requirements across the region through 2019. This comes at an opportune time as development surges; 2017 will be a record year, with nearly 150 msf of new office projects slated for completion across the 25 major cities that we track.

While there is likely to be a surplus of space in select markets 1 , the growing obsolescence of office stock in gateway cities like Singapore, Melbourne and Tokyo, and even in emerging locations like Manila, means new projects remain attractive to high-quality tenants looking for efficiency and modern facilities, and so these markets boast strong pre-leasing activity. Notably, nearly half of the projects coming online this year are already pre-committed in some of these markets.

1 Markets with office vacancies exceeding 14%: Ahmedabad, Chengdu, Hanoi, Jakarta, Kolkata, Mumbai, New Delhi, Adelaide and Perth

40 / Cushman & Wakefield

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