Reworking Lease Expires

OUR TEAM:

KEY TAKEAWAYS

1. Three-quarters (19 out of 25) markets are forecast to experience rental growth over the next 24 months. 2. 88% of markets in Asia Pacific are currently over-rented, but this will decline through to 2026 as ongoing rental growth takes effect. This suggests there is a “window of opportunity” for occupiers to rethink their lease expiries before markets start to shift. 3. For many markets in Southeast Asia, such as Singapore, Bangkok and Hanoi, arguably the best of conditions for occupiers have already past, though the gaps between lease rents and market rents will continue to grow, suggesting there is still some benefit in bringing forward negotiations. 4. In contrast, In India, significant annual rental escalations of 5% against forecast market rent rises of 1% to 2% mean that these markets are expected to remain over-rented). 5. For the remaining 52% (13 out of 25) markets, varying levels of under-renting are expected to endure through the forecast horizon. These markets should be investigated in detail to identify opportunities to rethink lease strategy and perhaps reset rents where local conditions allow.

ANSHUL JAIN Head of Tenant Representation, APAC anshul.jain@cushwake.com

ARPITA SRIVASTAVA APAC Tenant Representation arpita.srivastava@cushwake.com

NICK SEATON Head of Integrated Portfolio Management nick.seaton@cushwake.com

BERNARD LIM Transaction Management, Global Occupier Services bernard.lim@cushwake.com

TOM GIBSON Head of Project & Development Services, APAC tom.gibson@cushwake.com

DR DOMINIC BROWN Head of International Research, Global Think Tank dominic.brown@cushwake.com

ABOUT CUSHMAN & WAKEFIELD

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.

CONTACT ME TO START REWORKING MY REAL ESTATE STRATEGY

12

13

CUSHMAN & WAKEFIELD

REWORKING LEASE EXPIRIES