Office Market Slows Down

In Q1 2012, only 111,300 square meters of new office space entered the market, a 44 percent decrease compared to the previous period a year ago, Jones Lang LaSalle reported late last week.

About 80 percent of the new office market completions were Class B, whereas Class A was represented by only one building — Lighthouse, with office area of 22,500 square meters.

The real estate firm expects about 200,000 square meters of Class A office space to be completed by the end of the year. Although rents remained stable since Q2 2011, the firm expects them to increase 5 percent to 7 percent by the end of the year.

(MT)

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