Reworking Lease Expires

Over-rented versus Under-rented markets A WORKED EXAMPLE

SYDNEY

HO CHI MINH CITY

1,450,000

1,000 1,050 1,100 1,150 1,200 1,250 1,300

1,400,000

1,350,000

1,300,000

800 850 900 950

1,250,000

1,200,000

Lease Rent

Market Rent

Lease Rent

Market Rent

Outcome = Over-rented Lease rent 21% above market rent on expiry

Outcome = Under-rented Lease rent 8% below market rent on expiry

Source: Cushman & Wakefield

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