Asia Pacific Office Market Dynamics

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Demand resilience centres on prime assets

Asia Pacific

Q2 2026

Research

jll.com

Table of contents

Asia Pacific Office Market Dynamics

Hong Kong 06

Beijing 07

Shanghai 08

Guangzhou 09

Shenzhen 10

Taipei 11

Tokyo 12

Osaka 13

Seoul 14

Singapore 15

Bangkok 16

02 Jakarta 17

Kuala Lumpur 18

Manila 19

Hanoi 20

Ho Chi Minh City 21

Delhi 22

Mumbai 23

Bengaluru 24

Chennai 25

Pune 26

Kolkata 27

Hyderabad 28

Sydney 29

Melbourne 30

Brisbane 31

Perth 32

Adelaide 33

Canberra 34

Auckland 35

Wellington 36

01 Rental clock 03

Investment chart 04

Market insights 05

Growth slowing

Rents falling

Rents rising

Decline slowing

Adelaide, Canberra, Hanoi, Ho Chi Minh City

Grade A office rental clock

Asia Pacific Office Market Dynamics

Source: JLL, Real Estate Intelligence Service, Q2 2026 Note: Clock positions for the office sector relate to the main submarket in each city.

Chennai, Hyderabad

Mumbai, Osaka, Tokyo

Manila

Wellington

Perth, Pune

Auckland, Bengaluru

Brisbane, Sydney

Guangzhou

Adelaide, Canberra, Hanoi, Ho Chi Minh City

Kuala Lumpur

Taipei

Beijing, Shenzhen

Jakarta, Melbourne

Shanghai

Hong Kong

Bangkok

Singapore

Delhi

Seoul

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD

2026

Australia China Hong Kong Japan Singapore South Korea AP Others

Office investment Asia Pacific Office Market Dynamics

Note: Data pertains to completed transactions USD5M and above, and excludes Casino Property, Pub/Licensed Leisure, Development Site, Non-arm’s length deals. Source: JLL, Data as of Q2 2026

Direct office real estate investment 2008 - YTD 2026

USD millions

Asia Pacific • APAC leasing momentum remained resilient in Q2 2026 though showed mixed results across markets, underpinned by persistent

demand for high-quality, well-located space as workplace quality considerations and strategic upgrades shaped tenant decisions.

• Regional supply totalled 1.2 million s.m., slightly moderating from prior quarter levels. Vacancy rates edged down despite fresh completions, reflecting healthy underlying market fundamentals and sustained absorption in premium segments.

• Office investment volumes reached USD 17.2 billion—up 29% year-on-year—as institutional capital targeted high-quality assets, keeping office the region's most active real estate sector by volume.

Research

Asia Pacific

Office | Q2 2026

Leasing conditions varied across the region in Q2, with activity concentrated in prime, well-located assets while several markets experienced softness. Financial services, technology, and professional services firms anchored demand, with emerging interest from AI and AI-related companies also observed. Hong Kong recorded strong absorption as financial sector activity tightened Central's vacancy and drove rental increases, pushing spillover demand into Wan Chai and Causeway Bay. India saw volumes moderate slightly, though activity remained at strong levels through the first half. Mainland China showed uneven recovery—cost discipline shaped tenant decisions, with conditions largely tenant- favorable and concessions still common, though some landlords with high occupancy began firming on pricing as declines moderated. Tokyo's persistently tight conditions continued to weigh on leasing momentum while fueling rental growth, and Sydney-led expansion activity in Australia reinforced the broader flight to quality.

Investment activity stayed anchored in prime, well-located assets as capital prioritized quality over scale. In Japan, core investors returned to Grade A towers, with MetLife's Osaka acquisition and Nomura's D Tower purchase from BGO reflecting strong appetite. Singapore saw notable activity as CICT divested Asia Square Tower 2 to IOI Marina View for SGD 2.5 billion, enabling strategic portfolio optimization. South Korea witnessed institutional capital deployment through National Pension Service-backed managers targeting Seoul's premium inventory.

Outlook Underlying leasing activity is expected to remain steady through the remainder of 2026, with occupier demand continuing to concentrate in premium buildings within established business districts driven by quality upgrades and strategic relocations. Rental growth should remain focused on core locations where constrained availability supports pricing power, even as new completions expand options in select markets. Looking further ahead, while most business and CRE leaders recognize AI will significantly impact portfolio strategies over the next 3-5 years, few have moved beyond initial exploration (JLL's Future of Work Survey), and its ultimate effect on office markets will be shaped by multiple factors including AI labor availability, supply dynamics, and broader economic conditions (Where AI is changing jobs and what it means for real estate).

Historical supply and demand trends

12%

13%

14%

15%

16%

17%

2021 2022 2023 2024 2025 YTD 2026

s.m. (millions)

Net absorption New supply Vacancy rate

Note: Financial indicators are for the main submarket, while physical indicators are for the overall market. Data is on an NLA basis.

Fundamentals

YTD net absorption 2.4 million s.m.

YTD completions 2.5 million s.m.

Vacancy rate 14.7%

Rent growth Y-o-Y 3.9%

Lee Fong | lee.fong@jll.com Prerit Mahalwar | prerit.mahalwar@jll.com

https://www.jll.com/en-ca/insights/future-of-work-survey https://www.jll.com/en-ca/insights/artificial-intelligence-and-its-implications-for-real-estate https://www.jll.com/en-ca/insights/artificial-intelligence-and-its-implications-for-real-estate mailto:lee.fong@jll.com mailto:prerit.mahalwar@jll.com

Hong Kong

• Financial firms anchor sustained leasing demand.

• Central leads vacancy compression as fringe submarkets diverge.

• Capital values rebound as rental gains broaden.

Research

Hong Kong

Office | Q2 2026

In Q2 2026, total net absorption reached 492,000 sq ft, as leasing demand from the financial sector remained robust and pushed the vacancy rate in Central down to 8.8%. On the back of buoyant IPO market, mainland securities houses led take-up, highlighted by CITIC Securities leasing an entire floor of 18,000 sq ft at CITIC Tower in Admiralty in May, while Ping An Securities took up 14,900 sq ft at The Center in Central.

The overall Grade A vacancy rate stood at 13.1% in June, easing 1.0 ppts year-to-date as demand for prime space accelerated. Central and Tsimshatsui remained the firmest submarkets, with Central posting the sharpest year-to-date improvement in vacancy at -2.2 ppts. Kowloon East stayed the clear outlier at 20.0%, while Hong Kong East saw its vacancy expand by 0.6 ppts to 13.3% over the quarter. No new office buildings were completed in Q2 2026.

In June, overall office rent rose 1.7% q-o-q, with Central again the key driver at 3.3%. Rents in Wanchai/Causeway Bay rose 1.4%, suggesting the recovery is beginning to broaden beyond the core. Grade A office capital values rose 0.8% q-o-q in Q2 2026, the sector's first increase since 2021, supported by firmer values in Central and Wanchai/Causeway Bay where leasing momentum was strongest.

Outlook Demand for Central Grade A space should stay firm through 2026, supported by a strong IPO pipeline and mainland wealth inflows. Central Grade A rents are forecast to rise 10-15% over the year, extending the 7.3% first-half gain, led by the Grade A1 segment. Other core submarkets should see rental growth of 0-5%, while Hong Kong East and Kowloon East soften on rising vacancy. Overall Grade A rents are projected to rise 0-5% for the year, with capital values stabilising as end-user demand anchors investment.

Historical supply and demand trends

Note: Financial indicators are for Central, while physical indicators are for the Grade A office market. Data is on a NLA basis.

Fundamentals

YTD net absorption 1,101,000 s.f.

YTD completions 0 s.f.

Vacancy rate 13.1%

Net effective rent HKD 48.0 p.s.f. p.m.

Rent growth Y-o-Y 3.1%

Stage in rental cycle Rents Rising

-10%

-5%

10%

15%

20%

-2

2021 2022 2023 2024 2025 YTD 2026

s.f. (millions)

Net absorption New supply Vacancy rate

Beijing

• Lack of pillar industries to sustain leasing momentum.

• Future projects cause radiating competition rather than systemic shocks.

• Rent decline narrows in the quarter.

Research

Beijing

Office | Q2 2026

Continuing the trend observed since the start of the year, the leasing market experienced weak demand in Q2 2026. Tenant leasing demand was concentrated in the 300-500 sqm range, with preference for fully fitted, plug-and-play office options. Despite overall soft demand, the Zhongguancun submarket continued to attract new leasing demand from quantitative funds and emerging sectors such as AI and humanoid robots.

The overall vacancy rate remained stable at 11.2%, a decrease of 0.2 percentage points q-o-q. The net absorption was mainly driven by sizable deals in the CBD, Olympics Area and Lize submarkets. New projects scheduled for completion in H1 2026 were actively pursuing pre-leasing, primarily targeting consolidation demands from sizable tenants with upcoming lease expires, which is expected to pull up vacancy levels in nearby submarkets.

Overall Grade A rents fell by 1.9% in Q2 2026, primarily driven by fierce price competitions in the Third Embassy Area and East Chang'an submarkets near the CBD. Within these submarkets, older buildings with outdated facilities face sustained pressure in current market. The Grade A building Dinghao DH3 in Zhongguancun, was recently sold to a domestic equity fund for RMB 6.1 billion. Three insurance companies jointly held a 49.98% stake, while Qicheng Investment, one of the original investors, contributing the remaining balance.

Outlook Although Grade A rent reductions have narrowed over the past two quarters, the majority landlords still retain room for further rental concessions for tenants with sizable demands. Average rents are expected to fall by 9.7% y-o-y in 2026. The pre-leasing for future projects remains slow, which will result in a significant volume of vacant space entering the market in H2 2026. Consequently, the overall vacancy rate for is expected to rise to 14.6% by the end of 2026.

Historical supply and demand trends

Note: Financial indicators are for the CBD, while physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 45,000 s.m.

YTD completions 0 s.m.

Vacancy rate 11.2%

Net effective rent RMB 212 p.s.m. p.m.

Rent growth Y-o-Y -15.9%

Stage in rental cycle Decline Slowing

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24%

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2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Shanghai

• The overall market continued to benefit from upgrading demand.

• Two new projects with a total GFA of 135,400 sqm entered the market in Q2 2026.

• Rental decline slowed down while project-level rental divergence continued to widen.

Research

Shanghai

Office | Q2 2026

Net absorption recorded 106,200 sqm in the CBD in Q2 2026. Financial and professional services remained the dominant drivers in the market. Several high-quality projects attracted active leasing activities. The decentralised market recorded 125,900 sqm in net absorption. The TMT sector, particularly gaming and AI-related companies, maintained their leasing momentum.

Overall market vacancy rate edged down 0.7 ppts q-o-q to 23.5% as leasing activities picked up. Despite supply influx putting pressure on the CBD market, the CBD vacancy rate remained largely flat at 19.3% amid active upgrading relocations. No new completions entered the decentralised market in the quarter. Cost-saving demand from CBD submarkets along with upgrading demand from Grade B projects drove down vacancy rate by 1.2 ppts q-o-q to 27.1%.

In the CBD, rents decreased by 1.2% q-o-q to RMB 6.3 per sqm per day. Landlords of several premium projects tightened their negotiating stance and dialled back on lease-term flexibility as occupancy reached a relatively higher level. In the decentralised market, the large number of available spaces continued to put pressure on rental growth. Rents decreased by 1.0% q-o-q to RMB 4.1 per sqm per day. Several submarkets with active leasing momentum showed deceleration in rental decline.

Outlook Leasing momentum is expected to rebound as traditional sectors remained resilient while AI-related emerging sectors continued to show sustained expansionary demand. Given the supply influx, overall rents are projected to remain under pressure in the short term. Premium projects that maintained consistent occupancy rate will lead the market in rental stabilisation and recovery.

Historical supply and demand trends

Note: Financial and physical indicators are for the overall Shanghai office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 433,600 s.m.

YTD completions 356,200 s.m.

Vacancy rate 23.5%

Net effective rent RMB 5.13 p.s.m. per day

Rent growth Y-o-Y -9.4%

Stage in rental cycle Decline Slowing

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2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Guangzhou

• Emerging sectors sustain active leasing demand.

• Steady absorption of existing projects keeps the vacancy rate stable.

• Rental decline continues to narrow.

Research

Guangzhou

Office | Q2 2026

Guangzhou's Grade A office market sustained its recovery momentum, with tenant decision-making remaining rational and pragmatic. Leasing activity was primarily fuelled by cost-saving relocations and consolidations, as well as upgrades at manageable costs. Driven by AI integration and Chinese brands expanding overseas, emerging industries such as gaming, beauty, and cross-border e-commerce expanded rapidly. Together, they generated key incremental demand, accounting for 65% of expansionary and upgrade-driven transactions.

A newly completed project in GZIFT added approximately 128,000 sqm of new supply. Despite leasing pressure from the new completion, steady absorption in existing projects kept the citywide vacancy rate stable, edging up only 0.2 ppt q-o-q to 22.6%. Alternative property uses increasingly supported vacancy absorption. In the quarter, roughly 11,000 sqm of office space was converted into hotel use, lowering leasable supply and softening vacancy pressures.

This steady stock absorption lifted overall market sentiment, slowing the consecutive drop in citywide average rents to just 1.2% q-o-q in Q2 2026. Pazhou led the recovery with a marked deceleration in rental declines, strongly supported by leasing demand and thus firming landlord pricing expectations.

Outlook Emerging sectors are expected to continue generating incremental leasing demand. Driven by the rapid expansion of live-streaming MCNs, overseas digital marketing, and AI SaaS, more mid-sized firms are set to upgrade to Grade A office spaces. An influx of roughly 650,000 sqm in the next 12 months is projected to put upward pressure on citywide vacancy. However, supported by persistent demand recovery, the full-year rental decline in 2026 is expected to moderate relative to 2025.

Historical supply and demand trends

Note: Financial indicators are for Zhujiang New Town, while physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 165,900 s.m.

YTD completions 202,900 s.m.

Vacancy rate 22.6%

Net effective rent RMB 132 p.s.m. p.m.

Rent growth Y-o-Y -8.3%

Stage in rental cycle Rents Falling

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2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Shenzhen

• Leasing demand keeps recovering, lifted by expansion in tech-driven sectors.

• Citywide vacancy rate continues its downward trajectory.

• Rental declines narrow as effective absorption boosts market sentiment.

Research

Shenzhen

Office | Q2 2026

The office market extended its steady recovery in Q2 2026, with net absorption showing strong performance and achieving significant growth both q-o-q and y-o-y. Rapid growth in emerging sectors, notably smart hardware, AI and domestic brands expanding overseas drove flight-to- quality relocations and space expansion. Also, third-party office operators boosted net absorption, sustaining robust leasing momentum.

Two new projects entered the market in Q2 2026, bringing a total GFA of around 100,000 sqm, located in the Qianhai and Liuxiandong submarkets. Despite the steady influx of new supply, recovering demand drove the citywide vacancy rate down to 24.9% at quarter-end, dropping by 1.0 ppt q-o-q to mark a third consecutive quarter of decline.

Effective space absorption of has boosted landlords' market expectations and shifted pricing strategies, resulting in a notably weakened willingness among landlords to offer substantial rent concessions. The q-o-q rental decline narrowed to 1.0% in Q2 2026, marking the second consecutive quarter of improvement, with Futian CBD seeing one of the most pronounced recoveries.

Outlook Demand will maintain its structural recovery, mainly driven by expanding high-growth firms, supply-chain clustering around industry leaders, and active leasing from non-traditional sectors such as hotels. While over 1.5 million sqm of upcoming supply in the next 12 months may cause a temporary rise in vacancy, improving demand expectations will make landlords more resistant to rent cuts, further easing downward rental pressure.

Historical supply and demand trends

Note: Financial indicators and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 372,300 s.m.

YTD completions 243,800 s.m.

Vacancy rate 24.9%

Net effective rent RMB 120 p.s.m. p.m.

Rent growth Y-o-Y -9.1%

Stage in rental cycle Decline Slowing

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2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Taipei

Historical supply and demand trends

Research

Taiwan

Office | Q2 2026

• Leasing activity in Taipei's office market strengthened in Q2 2026, with the technology sector emerging as the dominant driver of

demand across key business districts.

• Vacancy reached its lowest level in nearly two years as demand outpaced new supply, with occupiers showing a clear preference for

new and well-located buildings.

• Rental growth continued at a measured pace, though a significant supply wave expected in H2 2026 may influence vacancy and

rental conditions across certain submarkets.

Leasing activity in Taipei's office market was active in Q2 2026, with quarterly net absorption reaching 15,122 ping, up from 3,529 ping in Q1 2026. This momentum reflects continued office upgrade demand and steady occupier activity across key business districts. The technology sector emerged as the dominant occupier group, accounting for 55% of leasing activity in Q2 2026, up from 38% in Q1 2026, reinforcing its position as the primary driver of demand in the CBD.

New supply totalling 4,499 ping was delivered in Q2 2026, while no completions were recorded in Q1 2026. With demand exceeding new completions, vacancy was 5.1% in Q2 2026, compared to 6.4% in Q1 2026, reaching its lowest level in nearly two years. Outside the CBD, the Others submarket represented 50% of non-CBD leasing volume, with over 2,500 ping leased at Shin Kong Hangzhou N. Building, highlighting occupiers' preference for new supply.

Net rents rose to NTD 3,776 ping per month in Q2 2026, up from NTD 3,769 ping per month in Q1 2026. Year-on-year rental growth edged up to 1.4% from 1.3% in Q1 2026, though the market remains in a growth-slowing phase of the rental cycle. Rental performance has been underpinned by robust leasing demand and limited new supply, supporting rental stability in well-occupied submarkets.

Outlook Approximately 47,000 ping of new supply is expected in H2 2026, well above the completions recorded in H1. This incoming supply will be a key factor shaping vacancy and rental trends into year-end. Rental growth is forecast to continue at a measured pace, though the concentrated supply wave may influence vacancy and rental conditions in certain submarkets, particularly where occupier demand is less established.

Fundamentals

YTD net absorption 18,700 ping

YTD completions 4,500 ping

Vacancy rate 5.1%

Net rent NTD 3,776 per ping p.m.

Rent growth Y-o-Y 1.4%

Stage in rental cycle Growth slowing

Note: Financial indicators are for Xinyi, while physical indicators are for the Grade A office

market. Data is on a GFA basis.

2021 2022 2023 2024 2025 YTD 2026

ping (thousands)

Net absorption New supply Vacancy rate

Tokyo

• Strong corporate performance keeps demand for office solid; net absorption falls slightly due to lack of stock in the quarter.

• Vacancy rate rises q-o-q to 0.8%.

• Average monthly rent per tsubo in the second quarter was 42,109 yen, up 4.6% q-o-q and 16.4% y-o-y.

Research

Tokyo

Office | Q2 2026

Net absorption in Tokyo Grade A office fell to -5,800 tsubo in Q2 2026. While office demand continues to remain strong due to good corporate performance, there was no new supply this quarter, which resulted in negative net absorption. By industry, demand was driven by scientific research, professional and technical services and manufacturing,

Tokyo’s vacancy rate in the Grade A office market in 2Q26 was 0.8%, up 0.1 pp q-o-q, and down 1.7 pp y-o-y. Tight vacancy was seen due to delay in the completion of new supply caused by soaring construction costs, with very limited availability of vacant space.

The average monthly gross rent per tsubo was JPY 42,109, up 4.6% q-o-q and 16.4% y-o-y in Q2 2026. By submarket, rents continued to increased in both the Otemachi/Marunouchi and the Akasaka/Roppongi submarkets, with rental growth particularly seen in the Otemachi/Marunouchi submarket, supported by its low vacancy rate. Capital values in 2Q26 rose 6.9% q-o-q and 21.1% y-o-y, accelerating from the previous quarter, due to strong momentum in rents and stable cap rates. There were no Grade A transactions completed in the quarter.

Outlook In the office leasing market, there is very limited amount of vacant space in existing buildings and projects scheduled for completion in the second half of 2026 are nearly fully leased with take-up for new supply that will enter the market in 2027 are seeing good progress. With delay in projects scheduled for 2029 materializing due to rising construction costs, tight supply-demand conditions are likely to continue in the foreseeable future. Key risks to the outlook include rising government bond yields and inflationary pressure from yen depreciation for the investment market.

Historical supply and demand trends

Note: Financial and physical indicators are for the 5 Kus Grade A office market. Data is on an NLA basis.

Fundamentals

YTD net absorption 63,200 tsubo

YTD completions 67,700 tsubo

Vacancy rate 0.8%

Gross rent JPY 42,109 per tsubo p.m.

Rent growth Y-o-Y 16.4%

Stage in rental cycle Rents Rising

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Net absorption New supply Vacancy rate

Osaka

Research

Osaka

Office | Q2 2026

Net absorption totalled +3,600 tsubo in Q2 2026. Limited Grade A availability is pushing tenants toward alternative strategies: remaining in current offices, renovating, or using flexible workspaces.

There are virtually no vacancies that match relocation demand. Traditionally, smaller spaces commanded higher per-tsubo rents, but this has reversed--premium pricing now applies to large spaces of 500+ tsubo. Q2 2026 vacancy rate fell to 1.8%, down 0.4 pp q-o-q and down 1.5pp y-o- y. The quarter saw no new supply, and the absorption of vacancies at Yodoyabashi Gate Tower and Grand Front Osaka Tower B primarily contributed to the decline in the vacancy rate.

Rents averaged JPY 28,083 per tsubo per month, up 3.6% q-o-q and 14.1% y-o-y. Landlords have maintained the upper hand, with even those with vacancies not rushing to close deals but rather taking their time to aim for contracts at higher rents. On the other hand, rapid rent increases are creating new challenges. There is a perception gap between tenants' budget expectations and the rent levels landlords anticipate. In fact, some buildings have experienced a decline in inquiries after raising asking rents. Capital values increased by 5.6% q-o-q and 16.0% y-o-y in Q2 2026, driven by rising rents.

Outlook The only new supply planned through 2030 is the "Taisei Midosuji Tower" (Chuo-ku, total floor area approximately 14,000 tsubo), scheduled for completion in July 2026, and the market is expected to remain extremely tight. Grade A office space is becoming genuinely scarce. As available floor decreases, rents continue their upward trajectory, with annual rental growth for 2026 forecast at approximately 12%.

Historical supply and demand trends

Note: Financial and physical indicators are for the 5 Kus Grade A office market. Data is on an NLA basis.

Fundamentals

YTD Net absorption 10,600 tsubo

YTD completions 0 tsubo

Vacancy rate 1.8%

Gross rent JPY 28,083 per tsubo p.m.

Rent growth Y-o-Y 14.1%

Stage in rental cycle Rents Rising

-1%

-20

100

2021 2022 2023 2024 2025 YTD

2026

Tsubo (thousands)

Net absorption New supply Vacancy rate

• Strong demand from new office setups and expansion relocations, though limited availability may be constraining take-up.

• Vacancy rate falls to 1.8%, highlighting an increasingly tight market.

• Average monthly rent per tsubo reaches JPY 28,083, up 3.6% q-o-q and 14.1% y-o-y.

Seoul

• Overall net take-up remains positive, continuing the trend observed in the previous quarter.

• New supplies in the CBD drive vacancy rate upward.

• Yeouido sees its largest office transaction in almost five years.

Research

Seoul

Office | Q2 2026

CBD and Gangnam recorded positive net take-up of approximately 5,800 pyeong and 500 pyeong, respectively, supported by scheduled move- ins. Yeouido was the only submarket with negative net take-up of -1,600 pyeong due to anchor tenant departures at FKI Tower and Parc 1 Tower 1. The largest leasing deal was Lotte Rental signing a relocation deal for five floors at CBD's NH NongHyup Tower, taking over the space that remained vacant after DL E&C's departure. In Gangnam, Sanofi-Aventis Korea signed a lease for one floor at Center Field West.

Two Grade A office buildings were completed in Q2 2026, G1 Seoul (GFA of approximately 37,060 pyeong) and Rene Square (GFA of approximately 15,361 pyeong), both located in the CBD. Seoul's vacancy rate increased 230bps q-o-q to 6.6%, as the CBD's vacancy rate surged 542bps q-o-q to 12.3% with the two new completions added to stock at 100% physical vacancy. Yeouido rose 29bps q-o-q to 4.8%, while Gangnam dropped 7bps q-o-q to 0.9%.

Net effective rent in Seoul overall was KRW 152,800 per pyeong, up 2.2% q-o-q and 4.9% y-o-y. The CBD saw the largest uptick of 2.8% q-o-q due to the relatively high net effective rents of the newly supplied buildings. Gangnam rose 2.6% q-o-q, while Yeouido was flat. Total office deal volume reached KRW 4.0 trillion in Q2 2026. The most notable transaction was the Hana Financial Investment Building in Yeouido, which Hana Alternative Asset Management acquired from Koramco The One REIT for KRW 811.2 billion.

Outlook Unlike Yeouido and Gangnam, which are anticipated to maintain stable occupancy and effective rental growth due to limited new supply, the CBD is expected to see double-digit vacancy rates and declining effective rent levels due to its substantial new supply pipeline. While domestic institutions, including GEPS and Korea Post are providing dry powder to the market, investors are likely to be more selective in acquisitions due to oversupply concerns in the CBD and rising financing costs amid BOK raising the base rate to 2.75% in July.

Historical supply and demand trends

Note: Financial indicators are for the CBD, while physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 12,200 pyeong

YTD completions 52,400 pyeong

Vacancy rate 6.6%

Net effective rent KRW 162,397 per pyeong p.m.

Rent growth Y-o-Y 6.7%

Stage in rental cycle Growth Slowing

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Net absorption New supply Vacancy rate

-1

2021 2022 2023 2024 2025 YTD 2026

s.f. (millions)

Net absorption New supply Vacancy rate

Singapore

• Flight-to-quality demand broadens as AI, fintech and professional services firms anchor in prime CBD buildings while available large- format options continue to shrink.

• Constrained upcoming supply will sustain tight office vacancy levels.

• Rents enter their sixth year of post-pandemic growth.

Research

Singapore

Office | Q2 2026

Flight-to-quality demand benefits prime offices in the Marina Bay sub-market, with IOI Central Boulevard Towers and other prime buildings in the area approaching full commitment levels. Databricks will move into a new 32,000 sq ft office at IOI Central Boulevard Towers, quadrupling its footprint in Singapore. Other tenants that have recently moved into the same building include A&O Shearman, Franklin Templeton, and Virtu Financial. Meanwhile, Keppel South Central has benefited from displacement demand as tenants relocate from 79 Anson Road, which is earmarked for redevelopment. Notable relocations include JTB Singapore, OOCL, and Wan Hai Lines.

Shaw Tower was completed in Q2 2026, while 79 Anson was withdrawn from stock due to impending redevelopment works. While Shaw Tower's completion nudged overall CBD vacancy higher, vacancy excluding new supply fell to its lowest level in nine quarters. Singapore's office supply tightness shows no signs of easing. The refurbished Robinson Point (expected to complete by end-2026) and Newport Tower (expected to complete in 2027) will be the only non-strata new developments to enter the market over the next two years.

Office rental growth improved in Q2 2026 as tightening office supply reduced occupier negotiating leverage, particularly in the Marina Bay sub- market. The opening of the Circle Line Stage 6 MRT extension in July 2026 also boosted CBD accessibility, reinforcing the upward rent momentum. Capital values continued to climb in Q2 2026, lifted by positive rent growth prospects and continued low interest rates.

Outlook Demand from AI and technology sectors will continue to complement ongoing activity from financial and professional services firms. Flight-to- quality will remain the dominant trend over the next 12 months, sustaining competition for limited prime, large-format space. Constrained supply and broadening demand, underpinned by Singapore's role as a secure gateway for companies entering Southeast Asia, will sustain upward momentum in rents and capital values. However, prolonged geopolitical tensions remain a key downside risk.

Historical supply and demand trends

Note: Financial and physical indicators are for the CBD. Data is on an NLA basis.

Fundamentals

YTD net absorption 0.2 mil s. f.

YTD completions 0.2 mil s. f.

Vacancy rate 6.7%

Gross effective rent SGD 12.19 p.s.f.p.m

Rent growth Y-o-Y 4.3%

Stage in rental cycle Rents Rising

Bangkok

Historical supply and demand trends

Research

Thailand

Office | Q2 2026

• Absorption recovery has been driven by flagship relocations, while broader market demand remained subdued.

• Newly refurbished project re-enters prime stock, while corporate move-ins absorb space and ease market vacancy to 30.1%.

• Prime office rents remain stable as landlords prioritise pricing discipline over aggressive leasing.

Net absorption rebounded to 25,500 sq.m. in Q2 2026, driven primarily by major relocations to One Bangkok Tower 5. Overall demand remained subdued due to limited new enquiries alongside early lease renewals at existing buildings with favourable incentives.

Tenant activity remained concentrated in relocations and expansions, showing stable to marginally improving occupancy across the market. Most transactions were underpinned by small to medium-sized deals below 1,000 sq.m.

No new completions were recorded during the quarter. One refurbishment project in Central Bangkok submarket added 24,000 sq.m. to the prime stock, the submarket accounted for 72.3% of total CBA prime stock.

Vacancy rate softened by 176 bps q-o-q to 30.1%. Physical move-ins remained limited as many occupiers were still fitting out their spaces, while several pre-committed tenants are likely to complete their relocations in the second half of 2026.

CBA prime gross rents remained broadly flat at THB 1,024 p.sq.m. p.m. Landlords sustained face rents and capped rent-free periods at two months, reflecting the ongoing need to balance pricing discipline with occupancy objectives.

Yields remained unchanged at 5.6%. Yield stability reflected a balance between modestly improving net effective rents and subdued investment demand, as investors remained cautious amid elevated vacancy levels and uncertain economic conditions.

An anticipated 73,000 sq.m. of premium supply amid softening demand and prolonged tenant decision-making processes will push vacancy towards 32%, with absorption expected to take considerably longer given current market conditions.

Prime rents are forecast to grow modestly at 1.5% y-o-y to THB 1,027 p.sq.m. p.m., driven by new premium supply entering at higher rates, while existing stock offers 5 to 8% discounts to retain tenants amid elevated vacancy.

Fundamentals

YTD net absorption 22,100 s.m.

YTD completions 99,000 s.m.

Vacancy rate 30.1%

Gross rent THB 1,023 p.s.m. p.m.

Rent growth Y-o-Y −0.2%

Stage in rental cycle Growth slowing

Note: Financial and physical indicators are for the CBA Grade A office market. Data is on

an NLA basis.

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Jakarta

Historical supply and demand trends

Research

Indonesia

Office | Q2 2026

• Grade A office space maintains positive momentum with ongoing relocation activity within CBD

• No new completions in 2Q26 as supply pipeline remains constrained through year-end

• Grade A rent growth moderates but maintains positive trajectory amid economic uncertainty

• Outlook: Market faces constrained supply through end-2026 and throughout 2027 with limited new deliveries

Grade A office space sustained its growth trajectory with net demand totalling approximately 19,300 sqm, slightly exceeding the previous quarter. First-half demand reached around 37,500 sqm, aligning with positive projections for full-year net demand by end-2026. Financial services continued dominating office space demand by volume, with several relocation transactions occurring within the CBD. Despite positive absorption levels, rightsizing trends persisted as tenants optimized their footprints to balance costs and operational needs. No new supply entered the market in Q2 2026, with no additional completions anticipated for the remainder of 2026. The supply constraint created favourable conditions for existing buildings to improve occupancy levels as tenant demand continued absorbing available space. Grade A occupancy reached 68% in Q2 2026, rising 0.5 percentage points from the previous quarter. As the market gradually absorbs existing supply, landlords with higher vacancies are showing some flexibility in their tenant acquisition strategies.

Grade A rents sustained their upward trend, though growth moderated compared to the first quarter due to recent macroeconomic headwinds. Some landlords adopted a more cautious approach to rent increases, prioritizing occupancy stability over aggressive pricing. Rent growth remained concentrated in high-occupancy assets, particularly Premium-grade buildings in prime locations such as SCBD. Landlords with lower occupancy levels focused on capitalizing on tenant relocation activity to improve occupancy rates rather than pushing rental increases.

Outlook Vacancy forecast holds at 31% by year-end 2026, supported by limited new supply and sustained leasing momentum. Economic and political uncertainties temper 2026 rent growth expectations slightly, though the overall trajectory remains positive for well-positioned assets. No new completions are anticipated over the next two years. Indonesia 1 has been postponed to 2029 due to construction delays and will deliver approximately 62,000 sqm. Two Sudirman Office Tower is scheduled for 2029 completion, adding around 58,000 sqm to market inventory.

Fundamentals

YTD net absorption 38,000 s.m.

YTD completions 0 s.m.

Vacancy rate 32.2%

Net effective rent IDR 2 p.s.m. p.a.

Rent growth Y-o-Y 3.4%

Stage in rental cycle Rents rising

Note: Financial and physical indicators are for the CBD Grade A office market. Data is on

an NLA basis.

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Kuala Lumpur

• Leasing activity remains steady as vacancy improves to 14.8%.

• Pipeline supply expected to support rental growth amid limited prime space.

• Steady rental gains amid quiet investment activity.

Research

Kuala Lumpur

Office | Q2 2026

The market saw minimal movement in the quarter, with 250,000 sq ft of net absorption driven by automotive and fintech firms. The market is expected to strengthen in H2 2026 as pipeline deals conclude, potentially boosting demand further. With no new completions in the quarter, the overall vacancy rate improved to 14.8%, a decrease of 0.4% q-o-q, indicating positive leasing momentum in the absence of new competing supply.

The 2026-2030 pipeline is expected to stabilise and support rental growth due to limited availability of prime space, particularly green-certified buildings. The introduction of the Malaysian Digital Location Recognition (MLDR) framework provides a formal certification standard for tech- ready and ESG-aligned buildings, which would accelerate the bifurcation between premium and secondary supply.

The overall average rental increased to RM 6.88 p.s.f./month in Q2 2026, from RM 6.86 p.s.f./month, as rental increments were noted across submarkets, especially within established office locations such as TRX and Bangsar South. The KL transaction market remained subdued, dominated by domestic players. One notable deal was Golden Destination's Group Bhd’s subsidiary, ICE Holidays Sdn Bhd acquisition of Menara Liberty and the adjacent Menara Liberty Annex from Liberty General Insurance for RM 45 million to consolidate operations into its new headquarters.

Outlook Moving forward, the KL market is anticipated to deliver 2.64 million sq ft of new supply by year-end 2026, which is forecast to push vacancy to 16.4%. Nevertheless, premium locations with future-ready building specifications will retain strong performance as flight-to-quality intensifies, while aged buildings face increasing pressure.

Historical supply and demand trends

Note: Financial and physical indicators are for KLC. Data is on an NLA basis.

Fundamentals

YTD net absorption 554,900 s.f.

YTD completions 0 s.f.

Vacancy rate 17.0%

Gross rent MYR 7.47 p.s.f. p.m.

Rent growth Y-o-Y 1.6%

Stage in rental cycle Growth Slowing

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Net absorption New supply Vacancy rate

Manila

• Resilient office demand delivers positive net absorption, driven by corporate activity in Taguig and Makati.

• Vacancy rate decreased in Q2 2026 with sustained leasing momentum and no additional supply.

• Modest rent and capital value appreciation recorded during Q2 2026.

Research

Manila

Office | Q2 2026

Office net absorption reached 40,400 sqm, driven by corporate activity in Taguig City. Notable deals include a logistics firm (3,250 sqm) and a construction firm (2,180 sqm). Similarly, Makati City saw strong activity with a media firm taking 1,660 sqm and consumer goods and manufacturing sectors securing 2,500 sqm.

No new supply entered the market the quarter, with Q2 2026 projects delayed to Q3 2026. About 202,200 sqm of office space remains in the pipeline for delivery by year-end 2026. Q2 2026 saw vacancy rate decline to 13.8%, down 80.9 basis points from the prior quarter, behind sustained leasing demand.

Monthly average rents grew to PHP 1,108.1 per sqm in Q2 2026, reflecting a 1.8% quarterly increase driven by rental escalations as occupancy levels improved. Capital values increased 0.3% during Q2 2026, reaching PHP 190,594 per sqm, driven by sustained investor confidence.

Outlook Sustained demand from IT-BPM, technology, financial services sectors, flex spaces, and construction firms pursuing flight-to-quality space is anticipated to support absorption of considerable new supply scheduled for year-end delivery. Rental rates face potential upward pressure driven by well-occupied existing inventory and premium upcoming new supply pricing. Capital values remain under modest pressure as elevated interest rates sustain investor caution.

Historical supply and demand trends

Note: Financial and physical indicators are for the Makati City and Taguig City Grade A office market. Data is on an NLA basis.

Fundamentals

YTD net absorption 33,300 s.m.

YTD completions 29,100 s.m.

Vacancy rate 13.8%

Net effective rent PHP 1,108 p.s.m. p.m.

Rent growth Y-o-Y 0.4%

Stage in rental cycle Decline Slowing

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Hanoi

• Non-CBD area drives positive net absorption in H1 2026, offsetting challenges in the CBD market.

• The market records one new completion of 60,000 sqm in West Westlake cluster.

• CBD rents remain stable while Non-CBD rents rise driven by new supply.

Research

Hanoi

Office | Q2 2026

Grade A net absorption reached 2,600 sqm in Q2 2026, bringing the first-half total to 3,200 sqm. While CBD markets remained challenged by cyclical tenant exits upon lease expiries, overall net absorption stayed positive, driven primarily by demand for new buildings in non-CBD areas. Grade B recorded stronger performance with net absorption of 13,400 sqm in Q2 2026 and 15,000 sqm for H1 2026, driven primarily by leasing demand in non-CBD locations. This performance underscores the resilience of Grade B demand, as cost-conscious occupiers continue to find value in accessible, functionally adequate space.

Hanoi's office supply welcomed the opening of IFC Hanoi in Q2, adding 60,000 sqm of Grade A NLA in non-CBD (West Westlake cluster). The addition brought total H1 2026 completions to over 95,000 sqm NLA, nearly matching the entire 2025 annual supply. Following the new supply entry, Grade A vacancy rate increased to 26.2% in Q2 2026, up 7.0 ppts from 19.2% in Q1, as the market absorbs the additional space. In contrast, Grade B segment continued to perform steadily, with occupancy improving to 83.9% from 83.0% in Q1 2026.

Grade A gross rent in CBD remained stable at USD 40.5 per sqm per month, while non-CBD rents increased 3.2% q-o-q to USD 31.5 per sqm per month, driven by new supply entering at above-average rental rates. Meanwhile, Grade B gross rent held steady at USD 20.6 per sqm per month.

Outlook Substantial Grade A five-year supply pipeline in West Westlake cluster is expected to fundamentally reshape Hanoi's office market dynamics while the majority of future Grade B supply is concentrated in The West. Tenants will gain expanded options in modern, amenity-rich buildings, while older stock across the city faces heightened competitive pressure, compelling landlords to upgrade their assets and carefully refine leasing strategies to attract and retain tenants.

Historical supply and demand trends

Note: All indicators are for Grade A&B Office and For lease properties. Data is on an NLA basis.

Fundamentals

YTD net absorption 18,200 s.m.

YTD completions 95,800 s.m.

Vacancy rate 19.1%

Gross asking rent USD 25.5 p.s.m. p.m.

Rent growth Y-o-Y 1.3%

Stage in rental cycle Growth Slowing

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Ho Chi Minh City

• Market shows continued positive net absorption in Q2 2026 amid no new supply.

• Marginal decline in overall vacanchịcy rate driven by CBD decrease.

• Rents remained broadly stable across segments.

Research

Ho Chi Minh City

Office | Q2 2026

Net absorption in Grade A reached 8,300 sqm in Q2 2026, bringing the first-half total to 11,700 sqm, with leasing activity concentrated primarily on Saigon Marina IFC, which completed in 2025. The Grade B segment recorded healthy demand, with net absorption of nearly 3,000 sqm in Q2 2026 and approximately 12,000 sqm for H1 2026, reflecting steady occupier activity aligned with the segment's cost-effective positioning.

With no new supply completed in Q2 2026, total leasable office area remained stable at 663,600 sqm and 1,197,400 sqm for Grade A and B, respectively. Amid limited new supply, occupancy continued to improve, up 0.6% q-o-q, particularly in the CBD. By end-Q2 2026, vacancy rates for Grade A and Grade B dropped to 17.6% and 10.0%, declining 1.2 ppts and 0.2 ppts q-o-q, respectively.

Grade A gross asking rents remained stable at USD 64.7 per sqm per month in the CBD and USD 35.8 per sqm per month in non-CBD areas. Across Grade A buildings, the rent differential between CBD and non-CBD remains nearly double, indicating tenants continue to pay a premium for location, accessibility, and brand prestige. Meanwhile, Grade B rents held steady at USD 33.6 per sqm per month, as landlords maintained pricing discipline.

Outlook In the short term, The Kross is the only project expected to complete in 2026, delivering more than 32,000 sqm of leasable office space to the CBD in H2 2026. Continued tenant preference for new premium office space, along with significant supply entering over the next 3-5 years, will intensify competition and challenge landlords to adjust rental rates and leasing policies to retain and attract tenants.

Historical supply and demand trends

Note: All indicators are for Grade A&B Office and For lease properties.. Data is on an NLA basis.

Fundamentals

YTD net absorption 23,800 s.m.

YTD completions 0 s.m.

Vacancy rate 12.7%

Gross asking rent USD 43.3 p.s.m. p.m.

Rent growth Y-o-Y 2.3%

Stage in rental cycle Growth Slowing

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Delhi

• Delhi NCR office leasing hits 3.55 million sq ft in Q2 2026.

• New supply infusion of 1.35 million sq ft in Q2 2026.

• Office rents witness 7.7% y-o-y growth.

Research

Delhi

Office | Q2 2026

In Q2 2026, gross leasing stood at 3.55 million sq ft, up 16% from the previous quarter. Flexible operators dominated space take-up with a 41% share, followed by consulting at 18% and IT/ITeS at 13%. Together, these three sectors represented 72% of quarterly leasing. In Q2 2026, net absorption reached 2.04 million sq ft, marking a 39% increase from Q1 2026. Gurgaon dominated with a 56% share, while Noida accounted for 30%. NH-8, Noida Expressway, Golf Course Extension and SBD Delhi accounted for 71% of overall net absorption.

In Q2 2026, 1.35 million sq ft of new office completions were noted in Delhi NCR. Gurgaon dominated with an 88% share, followed by Noida with 12%. Total Grade A stock now stands at 167.2 million sq ft. Key completions were on NH-8 and Golf Course Extension. Delhi NCR's office market is set to witness new Grade A office completions totalling 44.2 million sq ft between H2 2026 and 2030, driven by the development pipeline of leading developers in Gurgaon, Noida and Aerocity in Delhi.

Delhi NCR Grade A office rents reached INR 94.6 per sq ft in Q2 2026, rising 0.9% from the previous quarter. Healthy demand for limited Grade A assets in prime locations led developers to charge a premium for office space. Quality office developments in Gurgaon, Noida and SBD Delhi drew healthy tenant interest, hinting at rental growth ahead. Diversified tenant demand from co-working, IT/ITeS, consulting, manufacturing and financial institutions will keep absorption healthy mid-term.

Outlook In H2 2026, leasing is expected to hit the 3.8-4.3 million sq ft mark in premium office assets at prime locations, driven by reputed developers and institutional investors. This trend also signals potential rental growth ahead. Investment in office development will likely stay robust going forward. Strong leasing demand, improved quality standards, a solid pipeline of premium projects and better transport connectivity are driving continued market strength.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 3,506,816 s.f.

YTD completions 2,514,316 s.f.

Vacancy rate 18.5%

Gross rent INR 95 p.s.f. p.m.

Rent growth Y-o-Y 7.7%

Stage in rental cycle Rents Rising

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2021 2022 2023 2024 2025 YTD 2026

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Net absorption New supply Vacancy rate

Mumbai

• Gross Leasing moderates as occupiers pause amid uncertainty and supply constraints.

• Net absorption outpaces supply infusion; vacancy down to a 16-year low.

• Rents strengthen as low vacancy supports rental growth.

Research

Mumbai

Office | Q2 2026

Leasing activity in the quarter was slightly muted with gross leasing volume recorded at 1.69 million sq ft; 59.7% lower q-o-q. However, on a half yearly basis the gross leasing stands at 5.88 million sq ft; up by 17.8% compared to the same period in 2025. BFSI sector continued to dominate the gross leasing activity with a share of 29.5%, followed by the flex segment with 23.8% share and IT & ITeS with 20.3% share.

During the quarter, 1.11 million sq ft of supply was delivered, primarily in the Eastern Suburbs and SBD North submarkets, bringing the city's total stock to 163.8 million sq ft. As net absorption continued to outpace new supply, overall vacancy declined by 10 bps q-o-q to 10.8%, lowest in last sixteen years.

Gross rents rose by 1.0% q-o-q and 3.4% y-o-y with supply-constrained submarkets of Eastern Suburbs, SBD BKC, and Western Suburbs leading the quarterly rental appreciation with rise of 1.71%, 1.41%, and 1.38%, respectively. Capital values continue to track rental growth, consistent with previous quarters, enhancing market appeal and increased investor interest for both core and value-added opportunities as well as under- construction deals in key clusters.

Outlook Sustained occupier demand is anticipated from significant pre-commitments in new developments, but ongoing deals are showing some delayed decision-making given the uncertainties from geopolitics and AI impact. An estimated 8 million sq ft annual supply is projected in the medium term with net absorption to average 7.5-7.7 million sq ft annually during the same period, driven by BFSI, IT/ITeS, flex, and consulting sectors.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 2,909,700 s.f.

YTD completions 2,276,300 s.f.

Vacancy rate 10.8%

Gross rent INR 150 p.s.f. p.m.

Rent growth Y-o-Y 3.4%

Stage in rental cycle Rents Rising

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Bengaluru

• Net absorption in Q2 2026 is down but H1 is stronger y-o-y indicative of a temporary blip.

• Q2 new office supply at 5.8 million sq ft, up 73% y-o-y.

• Rents up modestly by 0.7% q-o-q.

Research

Bengaluru

Office | Q2 2026

Office leasing volumes were down 24% q-o-q to 4.1 mn sq ft in Q2 2026 due to uncertainties around portfolios and headcount projections driven by AI adoption and geopolitics affecting business decision-making. Tech led quarterly leasing volumes with a 50% share, followed by flex with 26% . SBD led quarterly space take-up with a 76% share, with the SBD City cluster accounting for 44.1% of this submarket's total leasing volume.

New supply was concentrated in SBD with at 5.0 million sq ft (85.6% share) of supply added during the quarter, followed by Electronic City with a 13.0% share. The ORR South East cluster contributed 50% of the SBD's supply in Q2 2026. Office vacancy rose to 11.4% in Q2 2026, up 80 bps q-o-q, due to slower leasing and low pre-leasing levels in new completions. SBD and Electronic City saw vacancies rise with new supply, while Whitefield's vacancy fell q-o-q.

Property fundamentals remained robust across prime locations. Whitefield led quarterly growth with rents rising 1.3% q-o-q. Overall rents were up 5.4% y-o-y inidcating the strong market fundamentals. CBD posted the strongest rental growth of 9.0% y-o-y. Fresh leasing activity in premium grade buildings at prime locations sustained the upward momentum despite short-term market softness. Investor interest in asset purchase opportunities remains strong with yields showing a consequent compression of 20 bps y-o-y.

Outlook Bengaluru's office market is poised for growth as global companies expand tech and back-office operations. Future expansion will encompass manufacturing, healthcare, BFSI, flexible workspaces, engineering, and R&D, while responding to evolving workplace requirements. Bengaluru's office market will continue to witness new supply while maintaining rent growth through robust leasing. Capital values are expected to rise as sustained demand and solid fundamentals attract domestic and international investments.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 8,293,000 s.f.

YTD completions 11,707,500 s.f.

Vacancy rate 11.4%

Gross rent INR 102 p.s.f. p.m.

Rent growth Y-o-Y 5.4%

Stage in rental cycle Rents Rising

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Chennai

• Flex and IT/ITeS sectors anchor stable H1 demand amid diverse occupier activity.

• Limited supply and strong space take-up cause vacancy to decline by 120 bps q-o-q.

• Rents and capital values up marginally q-o-q.

Research

Chennai

Office | Q2 2026

Q2 gross leasing reached 2.3 million sq ft, down 14.6% y-o-y, though H1 2026 totaled 4 million sq ft, remaining stable compared to H1 2025. IT/ITeS led with 25.3% share af leasing activity, followed by flex at 24.5% and BFSI at 14%, showing diverse sector demand. Net absorption grew 13% q-o-q, with H1 2026 at 2.1 million sq ft, down 8%, due to cyclical tenant exits from lease expiries and prior relocation or consolidation strategies. SBD OMR and PBD OMR showed strong Q2 performance.

Two new projects, SKCL Summit and Arihant Vayu, in CBD and SBD OMR submarket, were completed in Q2, adding 0.18 million sq ft to the city's office Grade A stock. Vacancy across core markets remained in single digits, reflecting solid occupancy in existing stock. During H1 2026, new supply reached 1.3 million sq ft, representing a 9% increase from the same period in 2025.

PBD OMR recorded the highest rent growth in Q2 2026 at 10.8% y-o-y due to strong leasing momentum in the submarket. SBD OMR rents rose 5.8% y-o-y, propelled by new premium developments and rent increases across existing high-quality properties. Capital values increased by 5.9% y-o-y, aligning with rental growth. As a result, yields remained stable with no change recorded.

Outlook For the 2026-2027 period, the Chennai Grade A office market is anticipated to receive approximately 10 million sq ft of new supply. PBD OMR and SBD are projected to contribute two-thirds of this total. Leasing demand is expected to stay healthy, driven by flexible workspace operators, and GCCs across tech, manufacturing, and BFSI. The market is projected to remain balanced with strong net absorption similar to new supply, keeping vacancy steady at below 7.0%.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 2,154,200 s.f.

YTD completions 1,305,200 s.f.

Vacancy rate 6.8%

Gross rent INR 78.2 p.s.f. p.m.

Rent growth Y-o-Y 4.6%

Stage in rental cycle Rents Rising

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Pune

• Robust net absorption in Q2 2026, up 3x y-o-y.

• New supply of 3.25 million sq ft added in Q2 2026.

• Rental values increased marginally q-o-q.

Research

Pune

Office | Q2 2026

Quarterly net absorption reached 3.2 million square feet in Q2. The SBD captured 53% of this activity, while the suburbs West quadrant accounted for 46%. Meanwhile, fresh leasing activity in the CBD submarket remained subdued. Gross leasing in the quarter reached 2.92 million sq ft, registering 63% y-o-y growth. IT & ITeS accounted for 30.7% of leasing activity, while Telecom, Healthcare-Biotech and Real Estate & Construction collectively contributed 23.5%.

In Q2 2026, three new projects became operational, adding 3.25 million sq ft of fresh supply to the market. Of the total completions, 0.4 million sq ft was added in the CBD, while SBD East accounted for the majority share with 2.85 million sq ft. Despite healthy new supply, robust net absorption led to a decline in vacancy to 16.7%, down 40 bps q-o-q.

Overall gross rents were up marginally by 0.4% q-o-q and 1.1% y-o-y. At the submarket level and on a y-o-y basis, gross rents in the Suburbs increased the most, followed by the SBD submarket, which saw slower rent appreciation during the quarter. Capital values rose 1.4% q-o-q and 4.8% y-o-y, with yields declining marginally across all submarkets as investor demand remains strong for core assets, as well as value-added and build-to-core opportunities.

Outlook In H2 2026, approximately 5.2 million sq ft of new supply is slated for delivery, which is anticipated to fuel significant leasing activity across all submarkets. While Q2 2026 pre-commitments remained modest, a strong pipeline of active RFPs points to accelerated leasing in H2 2026, with annual volumes expected to reach historic highs.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 4,419,600 s.f.

YTD completions 3,250,000 s.f.

Vacancy rate 16.7%

Gross rent INR 83 p.s.f. p.m.

Rent growth Y-o-Y 1.0%

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Net absorption New supply Vacancy rate

Kolkata

• Kolkata records 0.2 mn sq ft of gross leasing in Q2 2026.

• Rajarhat dominates supply additions in Q2 2026.

• Rent growth notable across submarkets.

Research

Kolkata

Office | Q2 2026

In Q2 2026, Kolkata saw gross office leasing of 0.2 mn sq ft. Office space take-up fell by 65% y-o-y and 61% q-o-q due to slow decision-making by occupiers. Net absorption for the quarter reached 0.23 mn sq ft. Demand for office spaces was concentrated in Salt Lake Sector V and Rajarhat. Salt Lake represented 76% of quarterly gross leasing, and Rajarhat with 18%. Telecom, Healthcare and Real Estate firms combined drove 40% of leasing activity, with co-working contributing 33%.

The Rajarhat submarket witnessed the introduction of a new office with 0.23 million sq ft of supply. Consequently, the overall office stock increased to 29.9 million sq ft during the quarter. The quarter saw a 20-bps increase in vacancy rate to 13.8%, driven by the completion of a new office development, while demonstrating a 140 bps y-o-y decrease. Salt Lake submarkets experienced significant annual vacancy decline.

Strong office space demand and consistent vacancy decline pushed rents to INR 70.5 per sq ft per month, marking a 4.3% y-o-y and 1.0% q-o-q rise for the overall market. Salt Lake submarket led rent growth with a 2.2% increase to INR 60.3 per sq ft per month, while Rajarhat posted a 1% rise to INR 55 per sq ft per month. Muted occupier demand coupled with lack of new supply reflected in rent escalation across most submarkets.

Outlook Multiple new office projects are scheduled for completion in 2026 and are expected to add nearly 1.4 mn sq ft of cumulative office supply in locations such as Newtown, Salt Lake Sector V and EM Bypass. The upcoming new supply is expected to stimulate occupier demand in key office precincts. Leasing activity by IT & ITeS firms and co-working operators is expected to remain healthy and drive rental growth in the coming quarters.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 547,000 s.f.

YTD completions 232,300 s.f.

Vacancy rate 13.8%

Gross rent INR 71 p.s.f. p.m.

Rent growth Y-o-Y 4.3%

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Hyderabad

• Gross leasing activity in Q2 reached 1.77 million sq ft, up 4.7% y-o-y.

• New supply totalling 1.33 million sq ft added in Q2.

• Premium grade projects continue to drive rental value growth.

Research

Hyderabad

Office | Q2 2026

Hyderabad's gross leasing of 1.77 million sq ft in Q2 2026 was up 4.7% y-o-y. The H1 2026 figure stood at 5.38 million sq ft, up 17.6% y-o-y. Flex dominated Q2 leasing activity with a 41.1% share, followed by BFSI and Tech with 26.6% and 13.4%, respectively. Net absorption in Q2 2026 stood at 1.95 million sq ft, up 17.9% y-o-y. The half-yearly figure was 5.04 million sq ft, up 31.5% against the same period last year. Gachibowli led in Q2 2026 with a 49.9% share, followed by Hitec City with a 35.3% share.

The addition of 1.33 million sq ft from three project completions in Q2 2026, combined with the removal of select existing stock, brought the city's total inventory to 144.4 million sq ft. With net absorption continuing to outpace supply addition, overall vacancy declined to a 13-quarter low of 22.9%, dropping 70 bps q-o-q. Except for Suburbs Others, all other submarkets witnessed a q-o-q drop in vacancy levels.

Driven by a robust 5.3% q-o-q and 15.9% yearly increase in Hitec City rents, overall city rents climbed 3.8% q-o-q and 12.4% y-o-y to reach INR 76.3 per sq ft per month in Q2 2026. Capital values at the overall city level kept pace with rents, with yields in select submarkets witnessing a marginal drop of 5 bps q-o-q.

Outlook While a near-term annual supply pipeline of 16-17 million sq ft poses potential oversupply risks for Gachibowli, where the majority of upcoming supply is concentrated, Hitec City is expected to sustain lower vacancies, driven by continued demand for premium spaces. Market activity is expected to remain robust, driven by ongoing demand from key sectors such as GCCs, IT/ITeS, BFSI, healthcare and flexible workspace operators.

Historical supply and demand trends

Note: Financial and physical indicators are for the Grade A office market. Data is on a GFA basis.

Fundamentals

YTD net absorption 5,043,800 s.f.

YTD completions 1,135,400 s.f.

Vacancy rate 22.9%

Gross rent INR 84 p.s.f. p.m.

Rent growth Y-o-Y 11.9%

Stage in rental cycle Rents Rising

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2021 2022 2023 2024 2025 YTD 2026

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Net absorption New supply Vacancy rate

Sydney CBD

Historical supply and demand trends

Research

Australia

Office | Q2 2026

• The Sydney CBD office market recorded 39,300 sq.m. of year-to-date net absorption through Q2 2026.

• Vacancy fell to 13.9% in Q2 2026, down 0.7 pps from 14.6% at end of 2025.

• No new supply was delivered in Q1 and Q2 2026.

The Sydney CBD office market maintained positive momentum through Q2 2026, with year-to-date net absorption reaching 39,300 sq.m. Vacancy continued its gradual descent, falling to 13.9%, down 0.7 percentage points (pps) from 14.6% at end of 2025 and 1.6 pps below the 2024 peak of 15.5%. This marks a meaningful shift from the negative absorption recorded in 2022 and 2023, as the medium-term normalisation of vacancy rates reflects a sustained recovery in occupier confidence across the market.

No new supply was delivered in Q1 and Q2 2026, a significant shift from the 76,500 sq.m. and 162,100 sq.m. completed in 2025 and 2024, respectively. The absence of new completions has allowed existing stock to absorb demand more effectively, supporting rental growth. The supply pipeline will continue to influence market dynamics, and the 175,600 sq.m. of stock under construction across four projects represents a 3.3% increase to total stock, providing a partial release valve for growing demand as vacancy rates continue to fall.

Gross effective rents reached AUD 1,135 p.sq.m. p.a., with year-on-year growth of 8.3%, a rate that reflects tightening conditions particularly within premium and A-grade assets. The market continues its momentum in a rising rental cycle.

Outlook Vacancy is expected to continue declining as the market moves through a low supply period, with tightening conditions most evident in well- located, premium and A-grade assets where occupier demand has been concentrated. Tenant preference for high-quality, amenity-rich space is anticipated to continue pushing prime grade vacancy rates down over the near-term.

Fundamentals

YTD net absorption 39,300 s.m.

YTD completions 0 s.m.

Vacancy rate 13.9%

Gross effective rent AUD 1,135 p.s.m. p.a.

Rent growth Y-o-Y 8.3%

Stage in rental cycle Rents rising

Note: Financial indicators are for the CBD Prime office market, while physical indicators

are for the CBD office market (all grades). Data is on an NLA basis.

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Melbourne CBD

Historical supply and demand trends

Research

Australia

Office | Q2 2026

• Vacancy in the Melbourne CBD continued to rise, driven by occupier contraction and backfill from newly completed stock, with

demand remaining below long-term averages.

• The supply pipeline is thinning considerably, with two completions delivered over the quarter and under-construction stock set to

reach its lowest level in over two decades following Q3 2026.

• Capital market activity remained subdued, with limited transaction evidence and yield decompression anticipated over the near-

term, though liquidity may improve following November's state election.

The CBD headline vacancy rate was 20.5%, representing 1.1 million sq.m. of unoccupied vacant stock. Vacancy levels reflected contraction within the small tenant cohort (<1,000 sq.m.), which contributed 8,200 sq.m. of negative absorption, alongside backfill associated with stock completions.

The Melbourne CBD office market recorded net absorption of -6,300 sq.m. over the quarter. Over the last 12-months, net absorption totalled - 23,900 sq.m., remaining below the 10-year annual average of 28,300 sq.m.

Two project completions were recorded over Q2 2026, delivering a combined 48,000 sq.m. to the CBD market. GPT's 51 Flinders Lane delivered 29,000 sq.m. at a pre-commitment rate of 35.9%, while the first stage of Cbus Super's 435 Bourke Street delivered 19,000 sq.m. entirely pre- leased to the Commonwealth Bank of Australia. Following the anticipated second stage completion of 435 Bourke Street in Q3, under- construction stock will reach its lowest level since 2001 at 10,000 sq.m. across one project.

One office transaction above AUD 5.0 million was recorded in the Melbourne CBD over Q2 2026 for AUD 55.0 million. Prime yields were unchanged over the quarter at 5.88%–8.50%, however, values held due to lack of transactional evidence and yield decompression is likely over the remainder of 2026 amidst challenging market conditions.

Outlook The near-term demand outlook remains soft, with significant contraction and consolidation risk as occupiers navigate uncertain business conditions and an evolving political climate. The supply pipeline is thinning considerably, with no new development expected following Q3 2026. JLL forecasts slight decompression on the lower end of the Melbourne CBD prime yield range over the remainder of 2026. Capital market liquidity is expected to improve following November's state election, with greater clarity anticipated regarding future Victorian business conditions.

Fundamentals

YTD net absorption −30,900 s.m.

YTD completions 93,000 s.m.

Vacancy rate 20.5%

Gross effective rent AUD 518 p.s.m. p.a.

Rent growth Y-o-Y 2.9%

Stage in rental cycle Rents rising

Note: Financial indicators are for the CBD Prime office market, while physical indicators

are for the CBD office market (all grades). Data is on an NLA basis.

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Brisbane CBD

Historical supply and demand trends

Research

Australia

Office | Q2 2026

• Leasing activity in the Brisbane CBD accelerated in Q2 2026, with demand balanced across both prime and secondary stock.

• Tightening vacancy across prime and secondary stock and a small supply pipeline is supporting continued rental growth.

• Investment activity is anticipated to pick up in the second half of the year as deals finalise.

Leasing activity in the Brisbane CBD office market gathered pace in Q2 2026, with net absorption reaching 21,000 sq.m. for the quarter, bringing the year-to-date total to 26,200 sq.m. This result was balanced between positive results in prime and secondary NA, showcasing a spillover into higher quality B-grade stock as prime availabilities become scarcer. Prime vacancy stood at 7.7%, while secondary vacancy was 14.9%, bringing the overall vacancy rate to 10.6%.

Total transactions for the quarter reached AUD 48.1 million across one deal. Prime gross effective rents rose to AUD 574 p.sq.m. p.a., representing a year-on-year increase of 9.8%. Prime yields ranged from 6.00% to 8.25%, with a midpoint of 7.13%, while secondary yields ranged from 7.75% to 8.75%, with a midpoint of 8.25%.

No new supply was delivered in Q2 2026, and the next completion is set for Q1 of 2027.

Outlook In the near-term, market conditions are expected to be underpinned by sustained tenant demand and limited new supply, which are likely to support further tightening in vacancy rates and continued rental growth, albeit at a more moderate pace than recent years. Prime grade space is anticipated to experience stronger leasing activity, driven by tenant preference for high-quality assets. However, as prime CBD stock tightens further, a continuation of spillover demand is expected into higher quality B-grade stock.

Numerous assets are expected to trade over the latter half of the year and support strong investment volumes. The yield compression cycle has now been pushed back further to 2028.

Fundamentals

YTD net absorption 26,200 s.m.

YTD completions 0 s.m.

Vacancy rate 10.6%

Gross effective rent AUD 574 p.s.m. p.a.

Rent growth Y-o-Y 9.8%

Stage in rental cycle Rents stable

Note: Financial indicators are for the CBD Prime office market, while physical indicators

are for the CBD office market (all grades). Data is on an NLA basis.

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Perth CBD

Historical supply and demand trends

Research

Australia

Office | Q2 2026

• Headline vacancy rate on downward trend.

• Limited supply pipeline in the Perth CBD market.

• Marginal increases to face rental growth over the quarter.

The headline office vacancy rate in the Perth CBD decreased 0.3 percentage points (pps) to 16.0% in Q2 2026. Similarly, the prime grade vacancy rate declined 0.1 pps to 14.6%, driven by centralisation activity by large occupiers (>1,000 sq.m.). Net absorption in Q2 2026 totalled 4,900 sq.m.; up from 1,300 sq.m. recorded in the previous quarter. On a rolling annual basis, Perth CBD net absorption totalled 16,900 sq.m.

There are no projects currently under construction in the Perth CBD, with new office supply additions expected to remain low in the short to medium term. There are 11 projects in the Perth CBD with plans approved, totalling 300,500 sq.m. However, proposed new office projects are likely to require substantial pre-commitment to proceed.

Average prime net face rents increased over the quarter, up 0.4% to AUD 677 per sq.m. p.a., reflecting year-on-year growth of 1.7%. Average prime net effective rents decreased 0.2% to AUD 297 per sq.m. p.a., with year-on-year growth of 3.3%. Perth CBD prime office yields softened 25 basis points (bps) over Q2 2026 to a midpoint of 7.63%, while secondary yields were stable at a midpoint of 9.00%. Prime office yields also softened 25 bps on an annual basis.

Outlook Prime net effective rents in the Perth CBD market are expected to accelerate over the medium term due to a limited supply pipeline. Investment volumes may remain soft over the near term as investors are likely to still be selective in terms of potential acquisitions due to broader economic instability and potential further interest rate hikes.

Fundamentals

YTD net absorption 6,200 s.m.

YTD completions 0 s.m.

Vacancy rate 16.0%

Gross effective rent AUD 478 p.s.m. p.a.

Rent growth Y-o-Y 2.0%

Stage in rental cycle Rents rising

Note: Financial indicators are for the CBD Prime office market, while physical indicators

are for the CBD office market (all grades). Data is on an NLA basis.

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Adelaide CBD

Historical supply and demand trends

Research

Australia

Office | Q2 2026

• Headline vacancy rate recorded at its lowest since Q1 2020.

• Slowing supply pipeline in the Adelaide CBD.

• Prime yields were unchanged on a quarterly and annual basis.

Net absorption totalled 500 sq.m. in Q2 2026, down from 4,500 sq.m. recorded in the previous quarter. On a rolling annual basis, net absorption in the Adelaide CBD reached 21,700 sq.m. Nevertheless, the headline vacancy rate decreased 0.1 percentage points (pps) to 14.5% over the quarter; its lowest level since Q1 2020. The prime grade vacancy rate also decreased 0.9 pps to 13.6%, attributed to expansionary activity by large occupiers (>1,000 sq.m.).

No major developments completed over the quarter. However, there are currently two projects under construction in the supply pipeline, totalling 71,700 sq.m., and two projects with plans approved, totalling 51,000 sq.m. The largest project under construction is Festival Tower 2 - the second commercial tower on the Walker Corporation development site, which comprises 50,000 sq.m. of office space. The building is 38.0% pre-committed and expected to complete in Q4 2028.

Average prime gross face rents increased 0.4% over the quarter and reflected year-on-year growth of 3.6%. Average prime gross effective rents also increased 0.4%, with year-on-year growth of 3.3%. Average prime midpoint yields were unchanged at 7.75% on a quarterly and annual basis. There remains a spread between buyer and vendor expectations amid broader economic uncertainty.

Outlook Occupier expansionary activity and centralisation from suburban office geographies is expected to drive net absorption over the near term. However, net absorption is likely to be below the strong levels of the last three years. Investors are likely to remain selective in terms of potential acquisitions amidst broader global economic uncertainty, and prime office yields are forecast to be stable over the short term.

Fundamentals

YTD net absorption 5,000 s.m.

YTD completions 0 s.m.

Vacancy rate 14.5%

Gross effective rent AUD 339 p.s.m. p.a.

Rent growth Y-o-Y 3.3%

Stage in rental cycle Growth slowing

Note: Financial indicators are for the CBD Prime office market, while physical indicators

are for the CBD office market (all grades). Data is on an NLA basis.

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Canberra

Historical supply and demand trends

Research

Australia

Office | Q2 2026

• Net absorption reached -55,200 sq.m. year to date, driven by occupier consolidation, pushing the headline vacancy rate up to 10.5%.

• Year-to-date completions of 69,900 sq.m. have already surpassed the 35,200 sq.m. delivered across all of 2025, largely balancing out

a significant volume of stock withdrawals over the period.

• Gross effective rents held at AUD 374 p.sq.m. p.a., representing 3.9% growth year-on-year.

Canberra's office market recorded negative net absorption of -55,200 sq.m. year to date in Q2 2026, exceeding the -25,200 sq.m. recorded across all of 2025 with half the year still remaining. Occupier consolidation, particularly among large tenants, has been the primary driver of this negative demand trend. The headline vacancy rate marginally increased to 10.5%, compared to 10.4% at end of 2025 and 8.0% at end of 2024, continuing a gradual upward trend over recent years.

Supply additions have also contributed to the rise in vacancy. Year-to-date completions reached 69,900 sq.m. in Q2 2026, already surpassing the 35,200 sq.m. delivered across the entirety of 2025. This acceleration in new stock, alongside contracting net absorption, has added to the upward pressure on vacancy. A further 226,800 sq.m. remains under construction across eight projects, indicating that supply will continue to be a feature of the market in the near term. Gross effective rents were recorded at AUD 374 p.sq.m. p.a., representing 3.9% growth year-on-year.

Outlook Vacancy is expected to remain elevated in the near-term, as ongoing public service consolidation continues to weigh on demand and further supply completions are absorbed into the market. Rental growth is expecte to stabilise. With a substantial volume of supply still to be delivered, vacancy is likely to face further upward pressure over the coming periods, particularly within the secondary market .

Fundamentals

YTD net absorption −55,200 s.m.

YTD completions 69,900 s.m.

Vacancy rate 10.5%

Gross effective rent AUD 374 p.s.m. p.a.

Rent growth Y-o-Y 3.9%

Stage in rental cycle Rents stable

Note: Financial indicators are for the CBD Prime office market, while physical indicators

are for the CBD office market (all grades). Data is on an NLA basis.

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Auckland

• Flight-to-quality drives premium tightening.

• Prime pipeline reshapes the CBD.

• Premium demand strengthens, driving rents higher and incentives steady.

Research

Auckland

Office | Q2 2026

The Auckland CBD office market continues to tell a story of divergence that has sharpened this quarter. The overall CBD office vacancy rate has decreased to 15.8%. Premium-grade vacancy fell by 60 bps to just 2.1%. The prime vacancy rate edged up by 30 bps to 11.1% with the introduction of new uncommitted supply and refurbished space now available for lease. Secondary-grade vacancy is now at 21.7%.

Mosaic at 2-16 Wakefield Street, a newly completed A-grade commercial building, was delivered this quarter with a total NLA of 16,000 sqm. Along with refurbishment activity, key upcoming developments include Mansons TCLM's 35 Graham Street, currently under construction, and, in planning, Britomart's new office project and Precinct Properties' Pūmanawa Downtown West development at the Downtown Car Park site.

CBD prime average net rents edged up by NZD 5 per sqm p.a. this quarter to reach NZD 620 per sqm p.a. Premium rents increased by NZD 7 per sqm p.a. to NZD 725 per sqm p.a., while A-grade space saw a modest NZD 2 per sqm p.a. increase to NZD 515 per sqm p.a. Driven by improving demand for premium and A-grade properties, leasing incentives held steady this quarter at 8.5% and 14.5%, respectively.

Outlook The Auckland CBD office market is experiencing a phase shaped by both short-term market conditions and longer-term structural change. Despite a softer economic environment, renewed momentum is emerging among both investors and occupiers, with increasingly strategic decision-making evident across the market.

Historical supply and demand trends

Note: All indicators are for the CBD market (all grades). Data is on an NLA basis.

Fundamentals

YTD net absorption -4,400 s.m.

YTD completions 26,100 s.m.

Vacancy rate 15.8%

Net rent NZD 615 p.s.m. p.a.

Rent growth Y-o-Y 1.7%

Stage in rental cycle Growth Slowing

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Wellington

• Market bifurcation deepens.

• Repositioned stock expected to dominate pipeline.

• Rental conditions remain stable.

Research

Wellington

Office | Q2 2026

Office vacancy in Wellington increased to 15.9% in H1 2026 from 15.8% for H2 2025, largely reflecting continued space rationalisation across both government and private sector occupiers. In H1 2026, prime office vacancy in Wellington tightened by 110 bps to 7.4%, reflecting sustained occupier preference for high-quality, well-located buildings. In contrast, secondary vacancy softened, increasing by 100 bps to 20.8%.

Precinct Properties has recently delivered a new 11-level office development at 55-61 Molesworth Street within Wellington's parliamentary precinct. The building will be primarily occupied by the Ministry of Foreign Affairs and Trade (MFAT) and Beca. With no additional prime developments currently underway, the market's future supply pipeline over the next three years is expected to be dominated by approximately 103,066 sqm of refurbished and repositioned office space.

Prime average gross rents stayed flat this quarter at NZD 756 per sqm p.a., while secondary average gross rents declined by 2.2% to NZD 440 per sqm p.a. Prime gross rents are projected to rise to NZD 759 per sqm p.a. by year-end, an increase of around 0.4%, mainly due to higher operating expenses.

Outlook Wellington's commercial property market continues to evolve in response to shifting occupier requirements, government sector changes and broader private sector adjustments. Looking ahead, occupiers and investors will need to balance the advantages presented by current tenant- favourable market conditions with ongoing geopolitical uncertainty, government policy changes and broader economic uncertainty.

Historical supply and demand trends

Note: All indicators are for the CBD market (all grades). Data is on an NLA basis.

Fundamentals

YTD net absorption 9,500 s.m.

YTD completions 49,100 s.m.

Vacancy rate 15.9%

Gross rent NZD 756 p.s.m. p.a.

Rent growth Y-o-Y 0.7%

Stage in rental cycle Rents Falling

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To find out more about JLL services, contact:

Greater China China Daniel Yao Head of Research – China +86 86 61335456 daniel.yao@jll.cn

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New Zealand Chris Dibble Head of Research - New Zealand +64 21 242 9447 chris.dibble@jll.com

Global

Tom Carroll Global Head of Research – Sectors & Geos +44 7912 952514 tom.carroll@jll.com

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Office Slide 1: Asia Pacific Office Market Dynamics Slide 2: Table of contents Slide 3: Grade A office rental clock Slide 4: Office investment Slide 5: Asia Pacific

markets Slide 6: Hong Kong Slide 7: Beijing Slide 8: Shanghai Slide 9: Guangzhou Slide 10: Shenzhen Slide 11: Taipei Slide 12: Tokyo Slide 13: Osaka Slide 14: Seoul Slide 15: Singapore Slide 16: Bangkok Slide 17: Jakarta Slide 18: Kuala Lumpur Slide 19: Manila Slide 20: Hanoi Slide 21: Ho Chi Minh City Slide 22: Delhi Slide 23: Mumbai Slide 24: Bengaluru Slide 25: Chennai Slide 26: Pune Slide 27: Kolkata Slide 28: Hyderabad Slide 29: Sydney CBD Slide 30: Melbourne CBD Slide 31: Brisbane CBD Slide 32: Perth CBD Slide 33: Adelaide CBD Slide 34: Canberra Slide 35: Auckland Slide 36: Wellington

Back Contacts Slide 37 Slide 38

Asia Pacific Office Market Dynamics

Item Type: pdf