Asia Pacific Office Market Dynamics

Office markets across Asia Pacific are moving at different speeds - some tightening fast, others still adjusting. Our latest research tracks leasing momentum, rental trends, and market conditions across 30+ cities, giving you the intelligence to move at the right time.

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Office momentum driven by quality

Asia Pacific

May 2026

Asia Pacific Office Market Dynamics

Research

jll.com

Table of contents

Asia Pacific Office Market Dynamics

Asia Pacific 05

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

Growth slowing

Rents falling

Rents rising

Decline slowing

Grade A office

rental clock

Asia Pacific Office Market Dynamics

Source: JLL, Real Estate Intelligence Service, Q1 2026 Note: Clock positions for the office sector relate to the main submarket in each city.

Osaka, Pune

Mumbai, Tokyo

Manila

Shenzhen, Wellington

Hyderabad

Chennai, Perth

Auckland, Bengaluru, Delhi

Brisbane, Sydney

Guangzhou

Adelaide, Hanoi, Ho Chi Minh City

Kuala Lumpur

Seoul

Taipei

Beijing

Jakarta, Melbourne, Singapore

Shanghai

Hong Kong

Bangkok

Canberra

Office investment Asia Pacific Office Market Dynamics

Note: Figures refer to transactions over USD 5 million Source: JLL, Q1 2026

Direct office real estate investment 2008 – YTD 2026

USD millions

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

Asia Pacific • The Asia Pacific office leasing environment remained firm in Q1 2026, underpinned by sustained demand for high-quality, well-

located space—even as conditions varied across markets.

• Regional supply totaled 1.3 million s.m., slightly below Q4 2025 levels but up year-on-year. Despite new completions, vacancy edged down quarter-on-quarter, reflecting resilient absorption.

• Investment activity reached USD 24 billion—up 46% year-on-year—as capital concentrated in markets offering transparency, liquidity, and visible rental upside, keeping office the region’s most active real estate sector by volume.

Research

Asia Pacific

Office | Q1 2026

Across the region, leasing activity remained concentrated in high-quality, well-located assets, underscoring a clear performance divide between prime and secondary space. India led the region with a record-breaking first quarter for office leasing, driven by large pre-commitments from global technology and financial services firms expanding their delivery hubs—supported notably by active flexible workspace operators. Elsewhere, Mainland China showed early signs of leasing recovery, though rents continued to ease under persistent supply pressure. In Hong Kong, renewed demand from the financial industry lowered Central’s vacancy rate to its lowest level since 2023. Tokyo maintained a sub-1% vacancy rate, fueling robust rent growth. In Australia, Sydney’s strong CBD leasing activity—fueled in part by expansions—reinforced the broader “flight to quality,” a trend also evident in Melbourne, where leasing remained largely confined to prime-grade assets despite market- wide headwinds.

Investor priorities closely mirrored tenant preferences, with capital flowing toward high-quality assets in core locations. In Japan, competition for Grade A towers extended beyond Tokyo to Osaka and Fukuoka in search of yield. South Korea saw concentrated activity in Gangnam and Yeouido, where tight availability drove deals above asking prices. Singapore continued to attract value-add strategies, supported by institutional asset recycling and redevelopment opportunities enabled by planning incentives.

Outlook Demand for high-specification, well-located office space will remain the dominant trend through 2026, even as over six million s.m. of new supply enters the market—potentially pushing vacancy rates higher in the near term. Ongoing geopolitical risks, particularly in the Middle East, and persistent inflationary pressure could keep monetary policy tight, reinforcing occupier and investor preference for energy-efficient, sustainable buildings. These attributes not only help manage rising operating costs but also support sustainability commitments, making them key drivers of asset competitiveness across the region.

Historical supply and demand trends

13%

14%

15%

16%

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 1.2 million s.m.

YTD completions 1.3 million s.m.

Vacancy rate 14.1%

Rent growth Y-o-Y 5.3%

Hong Kong

• Demand normalises but quality leasing momentum holds firm.

• Central vacancy rates drop to single digit for the first time since 2023.

• Early signs of rental recovery amid ongoing capital market headwinds.

Research

Hong Kong

Office | Q1 2026

In Q1, total net absorption reached 614,300 sq ft, falling by 59.7% q-o-q from the elevated base in Q4 2025, when multiple office projects were completed. Demand from the financial sector remained robust, pushing vacancy in Central to their lowest level since 2023. The banking sector remained a key driver of leasing activity, highlighted by Standard Chartered Bank leasing 21,400 sq ft at One Causeway Bay and Rabobank securing 15,600 sq ft at One IGC in West Kowloon.

Continued improvement in occupancy was observed in Central and Wanchai/Causeway Bay, while other submarkets remained broadly stable or edged up slightly. The overall office vacancy rate dropped to 13.5% as of end-March, with Central recording a q-o-q decrease of 1.4 ppt to 9.6%. Meanwhile, vacancy rates in Kowloon East expanded by 1.0 ppts q-o-q.

In Q1, overall office rent rose 1.5% on a q-o-q basis. This uptick was primarily led by Central, where rents advanced by 3.8%. Conversely, fringe submarkets such as Kowloon East continued to face downward rental pressure despite their record-low rental levels. Capital values in the overall Grade A office market dropped by 0.4% q-o-q in Q1. The decline in HIBOR--from 3.1% at end-December 2025 to 2.2% by end-March 2026- -alongside stabilising rental levels, has helped moderate the pace of capital value decline.

Outlook Central's take-up is outpacing expectations, signaling a more robust and earlier-than-anticipated recovery in the submarket. Momentum is building in prime locations where availability is tight, and lease negotiations are accelerating. In fringe submarkets, sizable additions of marketable space are keeping landlords under pressure. Overall rents are projected to decline moderately by 0-5% in 2026.

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 614,300 s.f.

YTD completions 0 s.f.

Vacancy rate 13.5%

Net effective rent HKD 76.7 p.s.f. p.m.

Rent growth Y-o-Y 4.1%

Stage in rental cycle Rents Stable

-10%

-5%

10%

15%

20%

-2

2021 2022 2023 2024 2025 YTD 2026

s.f. (millions)

Net absorption New supply Vacancy rate

Beijing

• Overall leasing demand remains subdued.

• Pre-leasing of upcoming projects intensifies competition.

• Decline moderates amid low transaction volume.

Research

Beijing

Office | Q1 2026

Leasing volume in Q1 2026 stayed below 2025 levels, with typical seasonal softness amplified by sustained demand weakness. Most transactions in the quarter were carryover deals initiated by the end of 2025, with limited new leasing demand emerging. Tenants continued to prioritise cost efficiency as a core consideration, either moving to projects offering more competitive rents or downsizing their leased space.

The overall vacancy rate of the Grade A office market stood at 14.9% in Q1 2026, down slightly by 0.3 ppt q-o-q, driven by selective absorption in projects that offered aggressive rent cuts. Approximately 700,000 sqm of new supply is expected in 2026, the highest volume in recent years. Market pressure mounted as upcoming projects advanced pre-leasing to attract tenants ahead of delivery.

Average Grade A rents declined -2.4% q-o-q, with the pace of decline slowing compared to the previous quarter. Limited deal flow early in the year reduced downward momentum on pricing. Amid structural pressures on supply and demand, landlords have broadly adopted flexible leasing strategies to stabilize their existing tenant base, with rent adjustments increasingly handled on a case-by-case basis.

Outlook With demand recovery expected to be limited and new supply continuing to enter the market, near-term relief from leasing pressure appears unlikely. Average rents are forecast to decline -6.8% y-o-y in 2026. Projects with deep 2025 rent cuts are seeing steadier leasing, with some beginning to explore modest rent increases, while high vacancy assets will rely on aggressive pricing. Rental performance will remain structurally divergent.

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 25,200 s.m.

YTD completions 0 s.m.

Vacancy rate 11.4%

Net effective rent RMB 218 p.s.m. p.m.

Rent growth Y-o-Y -17.3%

Stage in rental cycle Decline Slowing

12%

16%

20%

24%

200

400

600

800

1,000

1,200

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Shanghai

• Demand picked up as tenants actively seek upgrade and relocation opportunities.

• One new project of 221,000 sqm entered the market in Q1 2026.

• Overall rents remained in downward cycle, while the pace of decline slowed.

Research

Shanghai

Office | Q1 2026

Net absorption recorded 71,800 sqm in the CBD in 1Q26. Financial services firms is the primary demand driver while TMT tenants are also actively seeking upgrade opportunities. Moreover, Foreign companies in the financial and professional services are turning active. The decentralised market recorded 129,700 sqm in net absorption. The market continued to benefit from cost -saving and upgrading demand. Some 3rd party operators were proactive in cooperating with landlord whether in traditional mode or profit-sharing mode.

Overall market vacancy rate edged down 0.2 ppts q-o-q to 24.1% as relocation and cost-saving drive leasing demand. CBD vacancy edged up 1.2 ppts q-o-q to 19.3% due to the new completion while decentralised vacancy dropped 1.3 ppts q-o-q to 28.4%. One project of 221,000 sqm reached completion in the CBD market. This premium project provided more opportunities for nearby upgrading tenants. The project has also secured one prominent internet company as anchor tenant.

In the CBD, rents decreased by 1.2% q-o-q to RMB 6.4 per sqm per day, reflecting widening project-level divergence. Some landlords are starting to become less accomodating in rental concession, especially for projects that has reached target occupancy rate. In the decentralised market, rents decreased by 1.5% q-o-q to RMB 4.1 per sqm per day. The trends of decentralisation and upgrading continued. Large available space remain on the market, exerting downward pressure on rental growth.

Outlook Leasing momentum is expected to rebound, as inspections and inquiries increased. However, macro uncertainties may still defer tenants' leasing decisions. Though rental decline slows down, overall market rents will remain under pressure in the short term considering large supply influx.

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 201,400 s.m.

YTD completions 220,800 s.m.

Vacancy rate 24.1%

Net effective rent RMB 5.16 p.s.m. per day

Rent growth Y-o-Y -10.6%

Stage in rental cycle Decline Slowing

10%

15%

20%

25%

30%

500

1,000

1,500

2,000

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Guangzhou

• Leasing demand remains in the process of recovery.

• Vacancy rate sees modest improvement.

• Rent reductions to drive absorption.

Research

Guangzhou

Office | Q1 2026

Upgrade-driven demand was particularly active, with around 60% of such leased area coming from the TMT sector. Key tenants included companies engaged in AI software development and AI applications in areas such as home health technology and corporate credit analytics. Cost-saving relocations remained a significant component of market activity, with one foreign food retail firm substantially lowering its rent by relocating within ZJNT for approximately 10,000 sqm.

One new project was delivered in GZIFT, adding about 75,000 sqm of supply. Amid limited new supply and continued absorption, the citywide vacancy rate edged down 0.5 ppts q-o-q to 22.4%, with Pazhou demonstrating relatively strong performance. Notably, structural adjustments on the supply side continued. During Q1 2026, two Grade A office buildings collectively repurposed approximately 20,000 sqm of space into hotel use to alleviate vacancy pressure and enhance asset utilization.

Facing competitive pressure, landlords continued to cut rents to facilitate leasing transactions. For example, a project achieved full occupancy by leasing nearly 30,000 sqm in Q1 2026, led by rental discount at approximately 15% below that of nearby competitors. During Q1 2026, the q- o-q rent decline narrowed slightly despite the unchanged demand-supply. Following sharp rent cut in the prior quarter to meet annual targets, many landlords narrowed rental discount at the early of the year.

Outlook AI is accelerating integration into traditional industries in the short term, spurring new AI-driven business segments and related office space expansion. It is expected to support demand in the emerging areas such as Pazhou and GZIFT. In the remainder of 2026, nearly 800,000 sqm of new office supply is expected to enter the market. Beyond rent concessions, landlords are enhancing operational capabilities and delivering integrated services remain competitive.

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 91,500 s.m.

YTD completions 74,900 s.m.

Vacancy rate 22.4%

Net effective rent RMB 135 p.s.m. p.m.

Rent growth Y-o-Y -9.1%

Stage in rental cycle Rents Falling

10%

15%

20%

25%

200

400

600

800

1,000

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Shenzhen

• Tech expansion and cross-border services drive leasing momentum.

• Citywide vacancy rates edge down.

• The pace of rental decline slows.

Research

Shenzhen

Office | Q1 2026

Leasing demand improved in Q1 2026, underpinned by expansion and upgrades from tech tenants such as consumer electronics. Accelerating overseas expansion also lifted office demand from cross-border service providers, such as marketing and logistics. Third-party workspace operators were active tenants in the quarter, leasing large office spaces across multiple Grade A office buildings in the Nanshan and Futian districts.

Two new Grade A office projects were completed in Q1 2026, adding about 140,000 sqm in total, both located in Nanshan District. The citywide Grade A vacancy rate fell to 25.9%, down 0.5 ppts q-o-q, marking the second consecutive quarterly fall. Improved leasing momentum partially offset the impact of new completions.

Average Grade A rents declined by 2.3% q-o-q in Q1 2026. Although rents remained under downward pressure, the pace of decline moderated compared with the previous several quarters. In Qianhai, continued tenant inflows and improving amenities accelerated vacancy absorption, supporting landlord sentiment and keeping rental declines at a low level in Q1 2026, broadly in line with the previous quarter.

Outlook Around 1.7 million sqm of new supply is projected to enter the market over the next 12 months, marking a near-term peak. Some landlords plan to convert vacant spaces into hotels and healthcare facilities, which should help partly ease vacancy pressure. Incremental office demand in Shenzhen is expected to be driven by the expansion of emerging industries, corporate overseas growth and related service providers, as well as the further take-up of headquarters for self-use.

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 142,700 s.m.

YTD completions 141,400 s.m.

Vacancy rate 25.9%

Net effective rent RMB 122 p.s.m. p.m.

Rent growth Y-o-Y -11.0%

Stage in rental cycle Decline Slowing

10%

20%

30%

1,000

2,000

3,000

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

Taipei

• Tech sector leads Taipei CBD leasing surge.

• Strong absorption offsets new supply pressure.

• Stable-income assets gain strategic priority amid uncertainty.

Research

Taipei

Office | Q1 2026

Leasing activity in Taipei's CBD reached 13,100 ping (43,300 sqm) in Q1 2026, registering 20% y-o-y growth. The robust absorption was driven by ongoing office upgrade demand and multinational corporations establishing new operational presences in the market. From an industry perspective,technology companies dominated leasing activity at 38%, absorbing over 4,000 ping fueled by AI-driven expansion. Financial services followed as the second-largest sector, accounting for nearly 30% of total leasing volume.

Despite fresh supply in the market, Taipei's CBD showed resilience with 4,547 ping absorbed in Q1 2026 and vacancy holding at 6.4%. The modest vacancy uptick was cushioned by steady tenant activity and some landlords reclaiming space for themselves. A few are now bringing in co-working operators to fill vacancies faster.

From a capital markets perspective, office offer inflation hedging and value preservation, making them critical defensive holdings in developer portfolios, especially amid heightened geopolitical tensions in the Middle East. A notable example is Highwealth Construction Corp's TWD 6 billion acquisition of the TransGlobe Life Insurance Xinyi Office, targeting stable rental income in the short term while securing land inventory for potential future residential redevelopment.

Outlook New supply totalling approximately 59,000 ping is expected in Taipei's CBD this year, with nearly half designated for owner-occupation, keeping vacancy stable. Substantial supply influx will not occur until 2028, when deliveries are forecast to reach 110,000 ping. The Taipei Main Station district will face the most intense absorption pressure during the 2028-2029 period. Rental performance is expected to diverge during this timeframe as the market adjusts to the concentrated supply wave.

Historical supply and demand trends

Note: Financial indicators are for Xinyi, while physical indicators are for the Grade A office market. Data is on a GFA basis. Investment volume in LCU billions.

Fundamentals

YTD net absorption 3,500 ping

YTD completions 0 ping

Vacancy rate 6.4%

Net rent NTD 3,769 per ping p.m.

Rent growth Y-o-Y 1.2%

Stage in rental cycle Growth Slowing

2021 2022 2023 2024 2025 YTD 2026

ping (thousands)

Net absorption New supply Vacancy rate

Tokyo

• Further increase in net absorption driven by strong occupier demand.

• Vacancy rate remains unchanged q-o-q at 0.7%.

• Rents rise for the ninth consecutive quarter.

Research

Tokyo

Office | Q1 2026

Net absorption in Tokyo's Grade A office market reached 69,000 tsubo in Q1 2026, increasing from 38,000 tsubo in the previous quarter. Demand has been driven by employees returning to offices and business expansion, primarily centered on manufacturing, IT, and professional services sectors.

Four new Grade A office buildings, including Tofrom Yaesu Tower (NLA: 31,300 tsubo), Takanawa Gateway City The Linkpillar 2 (NLA: 26,900 tsubo) and Sumitomo Fudosan Shiba Koen (NLA: 6,200 tsubo), and Omotesando Grid Tower (NLA: 3,300 tsubo) were completed in Q1 2026, increasing total stock by 3.5%. Tokyo's Grade A office vacancy rate in Q1 2026 was 0.7%, unchanged q-o-q and down 1.8 pp y-o-y.

The average monthly gross rent per tsubo was JPY 40,247, up 5.2% q-o-q and 13.2% y-o-y in Q1 2026. Capital values in Q1 2026 rose 5.5% q-o-q and 16.4% y-o-y, accelerating from Q4 2025, as strong rent momentum offset rising cap rates. Notable Grade A transactions included the purchase of Dentsu HQ Building by Brookfield for 300 billion JPY.

Outlook According to Oxford Economics' forecast as of March 2026, projections for real GDP growth in 2026 were revised down to 0.3% on the back of the conflict in the Middle East. In Tokyo's Grade A office leasing market, solid tenant demand continues while delays in new building completions are occurring due to labor shortages and rising construction costs. With the supply-demand balance tightening, rents are expected to maintain an upward trend going forward.

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 69,000 tsubo

YTD completions 67,600 tsubo

Vacancy rate 0.7%

Gross rent JPY 40,247 per tsubo p.m.

Rent growth Y-o-Y 13.2%

Stage in rental cycle Rents Rising

-1%

-50

100

150

200

250

2021 2022 2023 2024 2025 YTD 2026

Tsubo (thousands)

Net absorption New supply Vacancy rate

Osaka

• Relocation demand driven by talent considerations expanded from large corporations to mid-sized and small companies.

• The quarter saw no new supply and continued take-up in existing premises.

• Rents reached JPY 27,104 per tsubo per month, up 3.0% q-o-q and 13.9% y-o-y.

Research

Osaka

Office | Q1 2026

Osaka’s Grade A office market started 2026 strongly, with net absorption totalling 7,000 tsubo in Q1 2026. There was no significant concentration among tenants that relocated, with a wide range of sectors represented, including long-established manufacturers, wholesalers and IT companies.

There was no new supply delivered during the quarter. Yodoyabashi Gate Tower, which completed last quarter with a GFA of 40,000 tsubo and 29 storeys, has made steady progress in leasing. The Q1 2026 vacancy rate fell to 2.2%, down 0.9 pp both q-o-q and y-o-y. Buildings completed after 2024, which previously had available space, are now seeing their total vacancy significantly reduced, indicating tighter market conditions.

The average monthly gross rent per tsubo was JPY 27,104, up 3.0% q-o-q and 13.9% y-o-y, marking the first time annual rental growth has exceeded 13% since tracking began in 2003. Rises in rents at top-tier buildings are driving the overall increase. Capital values rose 2.9% q-o-q and 14.6% y-o-y in Q1, driven by rising rents. Notable transactions announced in the quarter included Meiji Yasuda Life Insurance's acquisition of Hulic Osaka Building. The buyer is planning to rebuild the acquired building.

Outlook According to Oxford Economics forecasts as of March 2026, Osaka City's real GDP growth is projected at +0.5% in 2026. The vacancy rate is expected to continue declining. With future new supply scheduled to be extremely limited, the only building due for completion in July 2026 is notable. Tenant demand remains strong, and it is expected to be fully let shortly after completion. Therefore, the vacancy rate at end Q4 2026 is forecast to decline to 2.0%. Vacancies in top-tier buildings are getting scarce in earnest. With available floor space becoming limited, the upward trend in rents is continuing, and the annual rental growth rate for 2026 is projected to be around 10%.

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 7,000 tsubo

YTD completions 0 tsubo

Vacancy rate 2.2%

Gross rent JPY 27,104 per tsubo p.m.

Rent growth Y-o-Y 13.9%

Stage in rental cycle Rents Rising

-1%

-20

100

2021 2022 2023 2024 2025 YTD

2026

Tsubo (thousands)

Net absorption New supply Vacancy rate

Seoul

• CBD drives growth in overall net absorption.

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

• Grade A office market cap rate 4.1% in Q1 2026.

Research

Seoul

Office | Q1 2026

Quarterly net take-up reached 7,500 pyeong, mostly driven by CBD move-ins, including NH's occupation of NH NongHyup Tower. Meanwhile, Yeouido and Gangnam posted negative figures due to tenant departures, recording -2,800 and -1,500 pyeong, respectively. Hanwha Ocean, previously located in Grand Central, signed a lease for seven floors at Daishin Finance Center. Part of the vacated space at Grand Central was leased by Encar.com Co., which relocated from AIA Tower, maintaining its presence within the CBD.

No new office buildings were added to the basket in Q1 2026. Seoul's vacancy dropped 39 bps q-o-q to 4.3%. The CBD was the only submarket to see improved vacancy, down 159 bps q-o-q to 6.9%, backed by scheduled move-ins at several buildings, including NH Nonghyup Tower. Yeouido and Gangnam both saw marginal q-o-q increases.

Seoul's net effective rent was KRW 149,516 per pyeong, up 1.1% q-o-q and 4.5% y-o-y. The CBD saw the largest uptick of 1.9% q-o-q, while Yeouido's effective rent dropped 0.9% q-o-q. In Q1, total office volume was KRW 3.4 trillion. The most notable transaction was Seoul Square in the CBD. Korea Investment Real Asset Management acquired it from ARA Korea Asset Management for approximately KRW 1.3 trillion through a share deal arrangement.

Outlook While Yeouido and Gangnam are expected to maintain steady occupancy backed by limited new supply, the CBD market is projected to face a higher vacancy rate and slower rental growth as new supply comes online starting this year. As domestic institutions such as NPS, Korea Post and Yellow Umbrella Mutual Aid provide liquidity in the market, investment is expected to gain momentum. Thus, oversupply concerns in the CBD will likely gravitate investor appetite towards Yeouido and Gangnam.

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 7,500 pyeong

YTD completions 0 pyeong

Vacancy rate 4.3%

Net effective rent KRW 157,946 per pyeong p.m.

Rent growth Y-o-Y 6.3%

Stage in rental cycle Growth Slowing

10%

15%

20%

-50

100

150

200

2021 2022 2023 2024 2025 YTD 2026

pyeong (thousands)

Net absorption New supply Vacancy rate

Singapore

• Singapore's office market saw continued leasing activity at the start of 2026, with vacancy tightening more significantly for prime office properties.

• Limited near-term pipeline will reinforce low office vacancy.

• Growth in rents and capital values moderates amid headwinds.

Research

Singapore

Office | Q1 2026

Positive leasing momentum from 2025 has carried into the CBD office market in Q1 2026, as a shrinking supply of new, high-quality space compels occupiers to secure locations for new and expansionary needs. The Marina Bay submarket led the drop in vacancy rates as tenants increasingly compete for buildings that enhance employee experience and advance sustainability objectives. This heightened demand saw some spaces being re-let even before the current occupants vacate.

The drop in office vacancy was also supported by a lack of new supply, as there were no major office completions during the quarter. Near-term office supply remains limited. Shaw Tower is slated for completion in mid-2026, while the refurbished Robinson Point and Cecil Place will re- enter the market in late 2026. Following this, Newport Tower and Solitaire on Cecil are expected in 2027.

Office rent growth continued in Q1 2026 but was unable to sustain the growth momentum of H2 2025, with quarter-on-quarter gains falling back to the sub-1% region as renewed tariff uncertainties and geopolitical tensions disrupted the recovery. Capital value growth also eased on the back of heightened market risks.

Outlook The combination of a tight supply pipeline and broadening office demand, fueled by Singapore's appeal as a safe and resilient hub that attracts firms looking to diversify into Southeast Asia, is set to drive continued growth in rents and capital values. However, this positive outlook is tempered by the risk that sustained high energy costs could raise business cost, erode business confidence and slow the pace of both economic and office property market growth.

Historical supply and demand trends

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

Fundamentals

YTD net absorption 0.1 mil s. f.

YTD completions 0 s. f.

Vacancy rate 6.3%

Gross effective rent SGD 12.04 p.s.f.p.m

Rent growth Y-o-Y 3.7%

Stage in rental cycle Rents Rising

-1

2021 2022 2023 2024 2025 YTD 2026

s.f. (millions)

Net absorption New supply Vacancy rate

Bangkok

Historical supply and demand trends

Research

Thailand

Office | Q1 2026

• Flight-to-quality trend persists as tenants relocate to premium space within submarket.

• Vacancy rate exceeds 30% for first time since 2000, following continued large-scale completions.

• Premium completions underpin modest average rental growth whilst landlord concessions intensify.

Bangkok’s prime office stock recorded negative quarterly net absorption of -2,500 sq.m. in Q1 2026. This temporary drop was driven by large- scale occupiers vacating older buildings, offsetting positive take-ups in newly completed assets. Tenant activity was concentrated within Central Bangkok submarket, with most activity along Rama IV Road. Intra-submarket relocations reflected continued flight-to-quality behaviour, as occupiers upgraded space within the same submarket.

One Bangkok Tower 5 became fully operational in Q1 2026, adding 99,000 sq.m. to the market. Total prime office stock in the CBA reached 1.76 million sq.m. Prime vacancy reached 31.8% in Q1 2026, exceeding 30% for the first time since 2000. New supply remained concentrated in Central Bangkok submarket, while the Central East recorded no new completions since mid-2024.

Prime gross rents in Bangkok’s CBA increased to THB 1,023 p.sq.m. per month, up 1.1% q-o-q. Recent premium completions supported the market growth, while most buildings maintained stable or discounted rents to attract occupiers and support occupancy. Capital value growth remained limited, with yields holding at 5.6%. Investors remained cautious amidst elevated vacancy levels and moderated leasing momentum.

Outlook The Bangkok CBA market is expected to receive an additional 73,000 sq.m. of premium supply from One Bangkok Tower 2 in Q3 2026. With absorption remaining constrained amid economic uncertainty and current leasing conditions, the vacancy rate is expected to remain near 31%. Prime rents are forecast to grow by 1.5% y-o-y by end-2026. Incoming premium completions are likely to command above-market face rents, while older assets are expected to continue offering renewal incentives to retain existing tenants.

Fundamentals

YTD net absorption −2,500 sq.m.

YTD completions 99,000 sq.m.

Vacancy rate 31.8%

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

Rent growth Y-o-Y −0.6%

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 | Q1 2026

• Market shows continued positive net demand at the start of the year.

• No new buildings were completed in Q1 2026.

• Rents show sustained growth amid supply-constrained market conditions.

Jakarta’s office market is showing positive net demand at around 18,000 sqm in 1Q26. Technology and professional services sectors maintained the highest take-up rates alongside financial services companies during the quarter. One flex-space company has expanded its operations in a Grade A office building in Sudirman area. In recent years, a common trend in expansion strategy has been joint operations with landlords. No new office completions were recorded year to date, with no additional completions expected throughout 2026. The Grade A occupancy rate was recorded at 67% in 1Q26, slightly up by 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 continued their upward trajectory in early 2026, increasing by 0.95% q-o-q. This is in line with the generally optimistic rental projections for the full year. The limited supply pipeline is expected to support the Jakarta office market recovery through 2026. Office vacancy rates are forecast to improve to 31% by year-end. Technology and financial services sectors are expected to remain primary demand drivers.

Outlook The limited supply pipeline is expected to support the Jakarta office market recovery through 2026. Office vacancy rates are forecast to improve to 32% by year-end. Technology and financial services sectors are expected to remain primary demand drivers. Rents are projected to continue improving throughout 2026. Premium buildings have led the overall rental recovery thus far. However, we may start to see the rest of the Grade A market attracting demand and raising rents from a low base in 2026.

Fundamentals

YTD net absorption 18,700 sq.m.

YTD completions 0 sq.m.

Vacancy rate 32.8%

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

Rent growth Y-o-Y 3.9%

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 momentum strengthens with surge in relocation activities.

• Business relocation strategies depend on future supply.

• Limited quality supply accelerates rental growth.

Research

Kuala Lumpur

Office | Q1 2026

Leasing momentum strengthened with significant relocation activity driven by flight to quality. Absorption grew moderately to 488,000 sq ft, led by the finance, tech and business services sectors. Strong pre-leasing momentum has emerged, particularly among major tenants in the DC submarket. New developments in established submarkets trended smaller (under 600,000 sq ft) due to supply concentration, while the DC accommodated larger formats with available capacity.

With no completions in the quarter, vacancy rates improved across submarkets. Overall, the vacancy rate fell by 0.76 percentage points to 15.2%. However, supply in 2026, equivalent to 2.64 million sq ft, will likely push the vacancy rate to above 17%. Timely completion of future supply is critical to accommodate planned relocations. Delays would disrupt businesses' long-term relocation strategies, forcing firms to seek alternatives or extend leases unfavourably.

Rental increases have been prominent across submarkets. Overall, the average rental increased to MYR 6.86 psf from MYR 6.81 psf. This market- wide rental appreciation highlights the ongoing competition for well-located quality buildings. Major corporate tenants have allocated significant capital expenditure for relocations. Despite the competitive market, landlords have been balancing rental growth with strategic concessions to secure high-quality, long-term occupiers.

Outlook New supply in 2026 is expected to be 2.64 million sq ft, potentially pushing vacancy to 17.3%. However, premium locations are becoming a landlord's market as flight to quality intensifies, with Grade A buildings commanding growth while secondary supply faces pressures. Tenants with expiring leases are actively exploring pre-leasing opportunities. Many are specifically targeting buildings under construction to secure access to future-ready green spaces, aligned with sustainability requirements.

Historical supply and demand trends

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

Fundamentals

YTD net absorption 373,500 s.f.

YTD completions 0 s.f.

Vacancy rate 17.5%

Gross rent MYR 7.45 p.s.f. p.m.

Rent growth Y-o-Y 0.8%

Stage in rental cycle Growth Slowing

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2021 2022 2023 2024 2025 YTD 2026

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Net absorption New supply Vacancy rate

Manila

• Net absorption continues to increase, led by Makati City as IT-BPM and media firms drive leasing demand.

• Vacancy rates increase as new supply added to the market outpaces occupancy gains.

• Rental rates hold steady as capital values increase moderately.

Research

Manila

Office | Q1 2026

The office sector absorbed 51,700 sqm in Q1, concentrated in Makati City. Leasing in the city was driven by a media firm with 3,400 sqm and IT- BPM firms with 3,200 sqm of take-up. Meanwhile, Taguig City's leasing activity was led by a technology firm securing 2,400 sqm, a media and entertainment company absorbing 1,300 sqm and a construction firm taking up 1,100 sqm.

Q1 2026 deliveries totalled 29,100 sqm with the completion of Gentry Corporate Plaza. Other projects initially scheduled for Q1 shifted to Q2 2026 due to delays. Approximately 202,214 sqm of new office inventory is scheduled by year-end 2026. Vacancy rates expanded to 14.6% in Q1 2026, up 45.6 basis points from the prior quarter. New inventory deliveries drove the increase, though steady leasing activity across key submarkets and industry sectors partially offset the impact.

Average monthly rents remained at PHP 1,088.3 per sqm throughout Q1 2026, reflecting landlords' decisions to waive escalation rates to maintain occupancy levels. Capital values rose slightly by 0.1% during Q1 2026 to reach PHP 189,946 per sqm, reflecting sustained investor confidence.

Outlook Sustained occupier interest is anticipated from the IT-BPM, technology and financial services sectors amid flight-to-quality trends, though considerable new supply may lead landlords to enhance incentives and offer competitive pricing to secure tenants. Rental rates face potential downward pressure from incoming supply, though well-occupied assets may hold current levels. Capital values may experience modest pressure as investor sentiment remains cautious.

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 -7,100 s.m.

YTD completions 29,100 s.m.

Vacancy rate 14.6%

Net effective rent PHP 1,088 p.s.m. p.m.

Rent growth Y-o-Y -1.7%

Stage in rental cycle Decline Slowing

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Hanoi

Research

Hanoi

Office | Q1 2026

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 600 s.m.

YTD completions 20,000 s.m.

Vacancy rate 19.2%

Gross asking rent USD 25.2 p.s.m. p.m.

Rent growth Y-o-Y 0.5%

Stage in rental cycle Growth Slowing

• Minimal absorption amid holiday slowdown.

• Influx of new supply pushes vacancy higher temporarily.

• Measured rental growth supported by new supply.

In Q1 2026, Grade A net absorption was modest at 620 sqm, a result of subdued leasing activity during the holiday period and limited initial take-up at newly delivered projects. Grade B net absorption reached 1,625 sqm, driven by new leasing at recently completed projects, which offset tenant departures from older stock. Overall, escalating headwinds have prompted most tenants to adopt a cautious approach to office planning.

The quarter welcomed two notable completions totalling over 36,000 sqm of NLA, both incorporating sustainability credentials: the LEED Gold– certified The Office (Grade A) at the Tien Bo Plaza complex and LEED Silver–certified The Marc88 (Grade B). The influx of new supply pushed market-wide Grade A vacancy rate to 19.2% in Q1 2026 from 16.5% in the previous quarter, while the Grade B vacancy rate rose to 17.0% from 13.8% in Q4 2025, driven by initial vacancy at newly completed projects.

In Q1 2026, Grade A gross asking rents edged up slightly to USD 37.1 per sqm per month (+0.9% q-o-q), while Grade B rents increased to USD 20.6 per sqm per month (+0.4% q-o-q), driven by new supply entering the market at above-average pricing. Meanwhile, most existing office buildings proactively maintained stable rents to attract and retain tenants amid rising competition from incoming supply.

Outlook West Westlake area is emerging as a new office precinct with robust future supply from integrated mixed-use developments designed to international standards. These projects are poised to set new market benchmarks, led by IFC Hanoi's nearly 60,000 sqm delivery in Q2 2026. West Westlake's substantial next five-year supply pipeline is expected to fundamentally reshape Hanoi's office market dynamics. Tenants will gain expanded options in modern, amenity-rich buildings, while older stock faces heightened competitive pressure.

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Ho Chi Minh City

• Market resilience persists, supported by steady leasing activity.

• Vacancy dips slightly as net absorption remains modest amid supply digestion.

• Rents remained broadly stable across segments.

Research

Ho Chi Minh City

Office | Q1 2026

The market continued to demonstrate resilience in early 2026, with existing buildings maintaining steady leasing activity supported by tenant relocations and headquarters consolidations. This measured absorption pace provides a stabilization period, allowing recent completions to gradually achieve target occupancy levels while enabling landlords to refine their leasing strategies ahead of additional supply entering the market. As a result, HCMC's office market recorded net absorption of approximately 12,600 sqm in Q1 2026.

No new projects were completed in Q1 2026. The office market's total leasable area remained stable at 663,600 sqm and 1,197,400 sqm for Grade A and B, respectively. The overall vacancy rate slightly decreased to 13.3% in Q1 2026, down from 14.0% in Q4 2025. This improvement was driven by positive net absorption at projects completed during previous quarters.

Gross asking rents across both segments remained broadly stable. CBD Grade A averaged USD 64.7 per sqm per month, stable q-o-q yet up 1.1% y-o-y, supported by Saigon Marina IFC’s above-average launch pricing in Q3 2025, while non-CBD Grade A adjusted slightly at USD 36.0 per sqm per month. Grade B rents remained consistent at USD 33.6 per sqm per month, as landlords maintained pricing discipline.

Outlook The only project expected to complete in 2026 is The Kross, delivering more than 32,000 sqm of leasable office space to the CBD in Q2. Tenant preferences are expected to continue favouring high-quality, well-located office space, particularly newer Grade A and B buildings in the CBD. The recent launch of International Financial Center (IFC) in late 2025 is anticipated to gradually attract MNCs over the coming quarters, supporting demand for premium office space in the CBD.

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 12,600 s.m.

YTD completions 0 s.m.

Vacancy rate 13.3%

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

Rent growth Y-o-Y 2.2%

Stage in rental cycle Growth Slowing

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Delhi

• Delhi NCR office market records gross leasing of 3.05 million sq ft during Q1 2026.

• New office completions at 1.39 million sq ft.

• Steady office rental growth expected in Delhi NCR.

Research

Delhi

Office | Q1 2026

Delhi NCR's quarterly gross leasing totaled 3.05 million sq ft, down 31% q-o-q. Flexible office providers were the largest occupiers, accounting for 32.9% of total leasing. This was followed by Manufacturing (17.1%), Consultancy (16.6%), and IT & ITeS (15.4%). Net absorption declined to 1.47 million sq ft, down 39% q-o-q. Both Noida and Gurgaon dominated captured 96% of the quarterly net absorption. Noida-Greater Noida Expressway, GCR and NH-8 submarkets witnessed bulk of new office space take-up.

In Q1 2026, new office space supply totaled 1.39 million sq ft. This new space infusion was largely concentrated in Noida, SBD Delhi, and Gurgaon, taking the Grade A office stock to 165.8 million sq ft. New supply declined by 51% y-o-y. Noida dominated new supply in the quarter, contributing 61% of the total. Gurgaon and SBD Delhi followed with 22% and 17%, respectively. Over the next five years, the market is expected to see quality developments from major developers backed by institutional players.

In the quarter, Delhi NCR office market witnessed Grade A rental growth of 1.2% q-o-q and 7.9% y-o-y. Healthy pre-commitments prompted major developers to adjust rents upward for upcoming supply, indicating continued market strength. Demand from co-working operators, technology majors and financial institutions will drive the next phase of growth for Delhi NCR's office sector. Leasing is expected to remain steady in the coming quarters and support potential rent growth.

Outlook Leasing activity is likely to be supported by quality office supply in established locations, led by reputed developers and institutional investors. This is expected to aid rental appreciation, with net absorption projected at 6.5-7.0 million sq ft by year-end 2026. The Delhi NCR office market is seeing growing investor interest. Market performance remains healthy. New premium office projects are being developed, leasing activity is strong, and transport infrastructure continues to improve.

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 1,468,100 s.f.

YTD completions 1,164,200 s.f.

Vacancy rate 19.1%

Gross rent INR 94 p.s.f. p.m.

Rent growth Y-o-Y 7.9%

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

Mumbai

• Gross Leasing volume up by 55.4% y-o-y.

• Vacancy declines to an all-time low.

• Rents up by 3.4% y-o-y.

Research

Mumbai

Office | Q1 2026

Quarterly gross leasing volume reached an all-time high, surpassing the previous record of Q4 2025, driven by substantial pre-commitments in Eastern Suburbs. This submarket held a 50% share in Q1 volumes, followed by Navi Mumbai and SBD North. Demand from BFSI dominated the quarterly leasing activity with a strong 67% share, driven primarily by a large pre-commitment. Demand from foreign-headquartered occupiers led leasing activity during the quarter.

During the quarter, 1.3 million sq ft of supply was delivered, primarily in Thane and SBD North, with IT-usage buildings accounting for the majority of new completions. Vacancy fell by 33 bps q-o-q and 100 bps y-o-y, driven by large transactions across all submarkets. The market is positioned for new supply as recent completions are largely occupied.

Rents increased by 0.7% q-o-q and 3.4% y-o-y. Navi Mumbai, SBD North, and Thane led rental growth with gains of 1.87%, 1.65%, and 1.33% respectively. Consistent with previous quarters, capital values remain aligned with rental growth, which is increasing market appeal and attracting heightened investor interest.

Outlook The market is set to experience sustained demand from occupiers as high-quality assets approach completion, with substantial pre- commitments in these developments expected to keep absorption at healthy levels over the next 12 months. Over the next two years, ~24 mn sq ft of supply is projected. Healthy net absorption is expected to keep vacancy within a tight range. Consolidation and expansion strategies are expected to drive demand with tenants exploring multi-cluster opportunities.

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 1,644,700 s.f.

YTD completions 1,163,300 s.f.

Vacancy rate 10.9%

Gross rent INR 148 p.s.f. p.m.

Rent growth Y-o-Y 3.4%

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

Bengaluru

• Net absorption at 4.9 million sq ft in Q1 2026 is 52% higher y-o-y amid sustained market momentum.

• New supply of 5.9 million sq ft in Q1 2026; up 68% q-o-q while reflecting the strong development pipeline the city.

• Rentals up 6.4% y-o-y, led by premiums on account of tight vacancy submarkets and quality developments.

Research

Bengaluru

Office | Q1 2026

Q1 2026 gross leasing reached 5.3 million sq ft, maintaining healthy momentum following Q4 2025's record 9.3 million sq ft. IT & ITeS sector reasserted dominance with a 53.2% share, followed by Manufacturing/Industrial (20.2%) and Co-Working space providers (15.9%). Large deals (>100,000 sq ft) drove market activity, reflecting sustained occupier confidence and strategic corporate space planning. SBD led net absorption with 3.1 million sq ft (62.7% share), with Whitefield contributing 1.7 million sq ft (33.7%).

New supply was distributed across multiple submarkets, with SBD leading at 4.1 million sq ft (69.7% share), followed by Whitefield at 1.5 million sq ft (25.3%). CBD recorded modest additions of 0.3 million sq ft. Office vacancy rose marginally to 10.6% in Q1 2026 from 10.5% in Q4 2025, as robust leasing was offset by the new supply additions. SBD's vacancy stands at 10.6%, while CBD recorded the lowest at 3.1%, reflecting tight supply conditions in the prime office hubs.

Property fundamentals remained strong with sustained rental growth across prime locations. CBD commands the highest rents in the city with a healthy rental appreciation (up 2.2% q-o-q), followed by SBD (up 1.4% q-o-q). Whitefield and Electronic City recorded rental increases of 2.7% and 0.9% q-o-q respectively, as developers leveraged quality specifications and sustainability certifications to command premium rents.

Outlook Pre-leasing is likely to remain strong, reflecting robust occupier activity. Tech is expected to lead demand, complemented by accelerating expansion from GCCs, manufacturing, fintech, healthcare, BFSI, advanced manufacturing sectors and flex operators. Superior grade projects nearing completion in SBD and Whitefield are expected to meet the sustained demand from tech and manufacturing segments, with certified sustainable developments commanding premium rents and attracting investor interest.

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 4,920,100 s.f.

YTD completions 5,919,800 s.f.

Vacancy rate 10.6%

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

Rent growth Y-o-Y 6.4%

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

Chennai

• Flex and IT/ITeS lead diverse sectoral demand despite y-o-y decline.

• Vacancy up by 90 bps q-o-q.

• Marginal increase in rents and capital values q-o-q.

Research

Chennai

Office | Q1 2026

Q1 gross leasing reached 1.7 million sq ft, down 10.7% y-o-y. Flex providers drove 30.2% of activity, while IT/ITeS contributed 25.2% and manufacturing 16.8%, demonstrating continued diverse demand across multiple sectors. Net absorption remained stable y-o-y but declined q- o-q due to cyclical tenant exits upon lease expiries and relocation or consolidation strategies executed in previous quarters. SBD and PBD OMR exhibited strong performance in Q1.

The city saw an addition of three properties in SBD, SBD OMR and PBD OMR, increasing the city stock by 2.7% q-o-q to 86.1 million sq ft. SBD's supply figures were influenced by efficiency changes in certain properties made by landlords. Vacancy across core markets remained in single digits despite supply additions, reflecting solid occupancy in existing stock. Incoming vacancies were quickly absorbed, indicating strong demand momentum in the city.

City rents rose slightly by 1.6% q-o-q, with rents rising by 3.3% q-o-q in PBD OMR. This increase was driven by new supply coming at higher rents and rental increases in premium properties in the city. Capital values showed marginal change, growing by 1.8% q-o-q. Consequently, yields remained steady, reflecting a balanced market where capital appreciation and rental income growth maintained equilibrium.

Outlook Robust demand, pre-commitments and active deals forecast healthy net absorption over the next 12-18 months. The IT, flex and BFSI sectors are expected to drive occupier activity, with demand anticipated to remain strong. The Chennai Grade A office market is projected to add approximately 9.5-10 million sq ft of new supply during 2026-2027, with PBD OMR and SBD collectively contributing roughly two-thirds of this upcoming supply.

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 1,013,400 s.f.

YTD completions 1,121,200 s.f.

Vacancy rate 8.0%

Gross rent INR 77.5 p.s.f. p.m.

Rent growth Y-o-Y 5.2%

Stage in rental cycle Rents Rising

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Net absorption New supply Vacancy rate

Pune

• Robust net absorption in Q1 2026, up 19% y-o-y.

• The city recorded no new completions in Q1 2026.

• Rental values remained range-bound in Q1 2026.

Research

Pune

Office | Q1 2026

Quarterly net absorption in Q1 reached 1.21 million sq ft. The western quadrant in the Suburbs submarket had the highest share of net absorption, followed by the SBD. Gross leasing in the quarter reached a historic high of 3.11 million sq ft, up 66% q-o-q and 0.5% y-o-y. The strong leasing momentum was driven by flex operators and BFSI occupiers.

No new completions were recorded in Q1 2026 due to construction and approval delays. However, Q2 2026 is set to see substantial project additions. With no new supply recorded, vacancy in Q1 2026 declined to 17.1%, down 130 bps q-o-q.

Overall gross rents were up marginally by 0.1% q-o-q and 2% y-o-y. At a submarket level and on a y-o-y basis, gross rents in the Suburbs increased the most, while the CBD submarket saw slower rent appreciation during the quarter. Capital values rose 1.2% q-o-q and 5.6% y-o-y, with yields declining marginally across all submarkets.

Outlook By the end of 2026, approximately 10 million sq ft of supply is expected to be added, creating significant demand from occupiers seeking Grade A office spaces across all submarkets. Q1 2026 saw robust pre-commitments, and this momentum is expected to continue through the year, pushing both net absorption and gross leasing to new peaks.

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 1,208,000 s.f.

YTD completions 0 s.f.

Vacancy rate 17.1%

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

Rent growth Y-o-Y 1.7%

Stage in rental cycle Rents Rising

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Net absorption New supply Vacancy rate

Kolkata

• Kolkata records 0.5 mn sq ft of gross leasing in Q1 2026.

• Lack of new office supply.

• Rent growth was observed across submarkets.

Research

Kolkata

Office | Q1 2026

In Q1 2026, Kolkata saw gross office leasing of 0.5 mn sq ft. Office space take-up grew 19% y-o-y and 53% q-o-q. Net absorption for the quarter reached 0.32 mn sq ft. Demand for office spaces was largely concentrated in the Rajarhat and Salt Lake submarkets. Rajarhat represented 69% of quarterly gross leasing, with Salt Lake accounting for 29%. IT & ITeS firms drove 68% of leasing activity, with co-working providers contributing 14%.

With no new office supply, vacancy declined by 90 basis points q-o-q to 13.6%. The SBD submarket saw a substantial 370 basis point quarterly decline in vacancy to 20.7% due to an uptrend in demand for office space from diversified business conglomerates. Total office stock remained unchanged at 29.6 mn sq ft due to the absence of new supply across submarkets. Despite Salt Lake and Rajarhat holding the largest share of office stock, these submarkets recorded an annual decline in vacancy to 10.9% and 9.8% respectively.

Strong office space demand and consistent vacancy decline pushed rents to INR 70.5 per sq ft, marking a 4.9% y-o-y and 1.2% q-o-q rise for the overall market. Salt Lake submarket led rent growth with a 1.3% increase to INR 59.0 per sq ft, while Rajarhat posted a 1.1% rise to INR 54.5 per sq ft. Strong occupier demand coupled with a lack of new supply in these sought-after submarkets drove rent escalation.

Outlook Multiple new office projects are scheduled for completion in 2026 and are expected to add nearly 1.6 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 315,500 s.f.

YTD completions 0 s.f.

Vacancy rate 13.6%

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

Rent growth Y-o-Y 4.9%

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Hyderabad

• Gross leasing in Q1 reached 3.16 million sq ft, up 25.1% y-o-y.

• No new supply recorded during the quarter.

• Rents and capital values continue to rise, supported by strong demand and sustained investor confidence.

Research

Hyderabad

Office | Q1 2026

Hyderabad witnessed gross leasing of 3.16 million sq ft in Q1 2026, up 25.1% y-o-y, albeit down on a q-o-q basis. IT/ITeS led leasing with a 49.2% share, followed by Flex and BFSI with 29.4% and 19.1% shares, respectively. Quarterly net absorption in Q1 2026, at 3.09 mn sq ft, was the highest in 16 quarters, underpinning strong expansion-oriented market sentiment. Hitec City led the net absorption with a 52.2% share, followed by Gachibowli contributing the rest.

With no new completions recorded during the quarter, the city's operational stock stands at 143.4 million sq ft. With no new completions and improved net absorption, overall vacancy declined to a 10-quarter low of 23.6%, dropping 210 bps q-o-q. Gachibowli and Hitec City witnessed a vacancy drop of 290 bps and 200 bps, respectively, in Q1.

Rents continued to strengthen, rising by 2.4% q-o-q and 10.7% y-o-y. Stronger q-o-q rental growth was recorded in Hitec City (3.1%), with new transactions being recorded at elevated rents in prominent, high-quality assets. Capital values grew at a slightly faster pace than rents in the quarter, with yields across submarkets witnessing a marginal drop of 5 bps.

Outlook Annual supply of 16-17 million sq ft is expected in the near term, primarily concentrated in Gachibowli, which is likely to face higher headline vacancy levels. Hitec City is expected to maintain lower vacancy rates due to continued demand for quality space. Robust market activity is expected to persist due to ongoing demand from various sectors, including GCCs in IT/ITeS, BFSI, the healthcare sector 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 3,091,000 s.f.

YTD completions 0 s.f.

Vacancy rate 23.6%

Gross rent INR 81 p.s.f. p.m.

Rent growth Y-o-Y 10.2%

Stage in rental cycle Rents Rising

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Sydney

Research

Sydney

Office | Q1 2026

Historical supply and demand trends

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.

Fundamentals

YTD net absorption 25,400 s.m.

YTD completions 4,500 s.m.

Vacancy rate 21.5%

Gross effective rent AUD 647 per sq.m. p.a.

Rent growth Y-o-Y 4.8%

Stage in rental cycle Rents rising

-30%

-20%

-10%

10%

20%

-300

-200

-100

100

200

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

• The Sydney office vacancy rate remained flat over the quarter.

• One completion was recorded across all Sydney markets totalling 4,500 sq.m.

• Sydney office transactions were concentrated in the metro markets over the quarter.

The Sydney office market recorded 25,400 sq.m. of positive net absorption over Q1 2026. The office vacancy rate remained flat over the quarter at 21.5%. The CBD remains the key source of positive demand, whilst some non-CBD markets remain challenged.

Sydney office prime gross effective rents grew 3.9% over Q1 2026. The quarterly growth rate was driven by high quality stock in the Sydney CBD as tenants look to upgrade into higher quality office accommodation. Rent growth remains challenging across Sydney's non-CBD markets, as a result of elevated vacancy rates.

Sydney office transaction volumes totalled AUD 1.2 billion over the quarter with majority of this being concentrated in the non-CBD markets (AUD 873.6 million), in particular North Sydney. Prime yields compressed in the Sydney CBD driven by sales evidence of best in class stock. The non-CBD Sydney yield profile remained unchanged.

There was one completion recorded across the Sydney office markets this quarter totalling 4,500 sq.m. in Parramatta. We are currently tracking 175,600 sq.m. under construction across the Sydney markets with all of this stock being concentrated in the Sydney CBD.

Outlook Over the next two years the Sydney office market will enter a very low supply period. Elevated construction costs and high economic rents required to get new development out of the ground will support leasing activity of existing high quality stock in the CBD and non-CBD markets, as it is expected tenants will continue gravitating to these types of assets, supporting a fall in prime vacancy rates.

Melbourne

Research

Melbourne

Office | Q1 2026

Historical supply and demand trends

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.

Fundamentals

2025 net absorption −40,200 sq.m.

2025 completions 57,100 sq.m.

Vacancy rate 19.3%

Gross effective rent AUD 474 per sq.m. p.a.

Rent growth Y-o-Y 0.3%

Stage in rental cycle Rents rising

-15%

-10%

-5%

10%

15%

20%

-100

-50

100

150

200

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

• Headline vacancy remained elevated across all three markets in Q1 2026. The CBD, Fringe and S.E.S markets each recorded negative net absorption during the quarter.

• The Melbourne CBD recorded one project reaching completion over Q1 2026, delivering 45,000 sq.m. In the Fringe market, one project completed totalling 12,100 sq.m., while no completions were recorded in the S.E.S market. The CBD pipeline remains limited in the near-term, with additional supply scheduled for delivery from the Fringe market through late 2027.

The CBD headline vacancy rate was 19.7%, representing 1.1 million sq.m. of unoccupied stock. Net absorption totalled -24,600 sq.m. over Q1. One project completed during the quarter, delivering 45,000 sq.m. at 7 Spencer Street with a pre-commitment rate of 10.1%. Three projects remain under construction and are scheduled to deliver a combined 98,000 sq.m. by early 2028. Prime yields were reported at 5.88%-8.50%. No transactions above AUD 5.0 million were recorded during the quarter.

The Fringe market recorded net absorption of -11,700 sq.m., with headline vacancy at 21.4%, representing 443,000 sq.m. of unoccupied stock. One project completed during the quarter, delivering 12,100 sq.m. at 33 Victoria Parade with a pre-commitment rate of 42.7%. Seven projects are under construction and are scheduled to deliver 60,000 sq.m. by late 2027. Prime yields were reported at 6.50%-9.00%. Two transactions were recorded for a combined AUD 291.5 million.

The S.E.S. market recorded net absorption of -3,900 sq.m. Headline vacancy was 15.1%, representing 234,000 sq.m. of unoccupied stock. No project completions were recorded during the quarter. Prime yields were reported at 7.25%-8.75%. Two transactions were recorded for a combined AUD 38.8 million.

Outlook

Leasing conditions in the CBD are expected to remain muted over the near-term, reflecting Q1 demand results and supply completions scheduled over 2026. The Fringe demand outlook remains positive, supported by heads of agreement signed for two tenants decentralising from the CBD. In contrast, the S.E.S. demand outlook reflects softer conditions characterised by negative net absorption, with future absorption expected to be driven primarily by existing occupier expansion and tenant relocation activity. Capital market activity is anticipated to remain measured across all three markets, consistent with limited transaction volumes over the quarter.

Brisbane

Research

Brisbane

Office | Q1 2026

Historical supply and demand trends

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.

Fundamentals

YTD net absorption −17,500 sq.m.

YTD completions 0 sq.m.

Vacancy rate 12.8%

Gross effective rent AUD 477 p.sq.m. p.a.

Rent growth Y-o-Y 10.5%

Stage in rental cycle Rents stable

-12%

-8%

-4%

12%

16%

-40

-20

100

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

• Occupier demand patterns continued to diverge between the CBD and Near City markets, highlighting a bifurcated leasing environment where centralisation persists.

• Investment activity continued in the CBD and Near City, with pricing indicators showing overall stability, selective yield tightening in the core, and an extended timeline for broader yield compression.

• Rental dynamics continued to shift as growth momentum started to moderate, while the absence of near-term supply shifted focus toward absorption of existing stock and reinforced tenant preference for CBD locations.

Brisbane’s office market continues to show signs of bifurcation between the CBD and Near City. The CBD recorded sustained tenant demand, with net absorption of 5,300 sq.m., while the Near City experienced net absorption of −22,800 sq.m., reflecting divergent occupier preferences across the two markets. Headline vacancy across the CBD moved marginally lower to 11.5%, while vacancy in the Near City market increased to 15.0%, underscoring softer conditions outside the core CBD.

Brisbane recorded AUD 151.7 million in transactions across six sales, equally balanced between the CBD and Near City. In the CBD, prime yields tightened over the quarter by 12.5 bps at the upper end, bringing the range to 6.00%-8.25%, or a midpoint of 7.13%. In the Near City, the range was unchanged at 7.00%-8.75%, or a midpoint of 7.88%.

Rental growth in Brisbane continued, with aggregated prime gross effective rent recorded at AUD 477 per sqm, a 10.5% year-on-year rise.

Outlook In the near-term, market conditions are expected to be shaped by the absence of new supply additions until 2027 in both the CBD and Near City markets, placing greater emphasis on how existing stock is absorbed. Rental growth is forecast to moderate, after a period of substantial increases. Tenant demand is expected to remain skewed toward the CBD, supported by its locational advantages and concentration of prime grade space, while the Near City market is likely to continue adjusting to higher vacancy levels.

Strong market fundamentals will support sustained investor interest through the near and medium-term. The previously forecasted yield compression timeline has now been delayed to Q1 2027 and will mark the beginning of the compression cycle.

Perth

Research

Perth

Office | Q1 2026

Historical supply and demand trends

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.

Fundamentals

2025 net absorption 1,300 s.m.

2025 completions 0 s.m.

Vacancy rate 16.3%

Gross effective rent AUD 478 per sq.m. p.a.

Rent growth Y-o-Y 2.5%

Stage in rental cycle Rents rising

-5%

10%

15%

20%

25%

30%

-20

100

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

• Headline vacancy on downward trend.

• Limited supply pipeline in the Perth CBD.

• Prime office yields unchanged over the quarter.

The headline office vacancy rate in the Perth CBD decreased 0.2 percentage points (pps) to 16.3% in Q1 2026. Similarly, the prime grade vacancy rate fell 0.3 pps to 14.7%, driven by centralisation and expansionary activity by large occupiers (>1,000 sq.m.). Net absorption in Q1 2026 totalled 1,300 sq.m.; down from the previous quarter's figure of 10,800 sq.m. On a rolling annual basis, Perth CBD net absorption totalled 17,900 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 299,100 sq.m. However, proposed new office projects are likely to require substantial pre-commitment to proceed.

Average prime net face rents were unchanged over the quarter at AUD 674 per sq.m. p.a., however reflecting year-on-year growth of 1.6%. Average prime net effective rents increased 2.2% to AUD 298 per sq.m. p.a., with year-on-year growth of 4.0%. Perth CBD prime office yields were stable over Q1 2026 at a midpoint of 7.38%, with secondary yields also stable at a midpoint of 9.00%. On an annual basis, prime office yields were unchanged.

Outlook Prime net effective rents in the Perth CBD market are expected to accelerate over the medium-term due to a limited supply pipeline. Investors are likely to still be selective in terms of potential acquisitions due to broader global economic uncertainty, along with re-emerging inflationary pressures, which is likely to halt the monetary policy easing cycle.

Adelaide

• Headline vacancy rate decreases in the Adelaide CBD.

• A relatively soft supply pipeline.

• Yields were unchanged on a quarterly and annual basis.

Research

Adelaide

Office | Q1 2026

Historical supply and demand trends

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.

Fundamentals

2025 net absorption 4,500 s.m.

2025 completions 0 s.m.

Vacancy rate 14.6%

Gross effective rent AUD 337 per sq.m. p.a.

Rent growth Y-o-Y 3.6%

Stage in rental cycle Growth slowing

-8%

-4%

12%

16%

20%

24%

-40

-20

100

120

2020 2021 2022 2023 2024 2025

s.m. (thousands)

Net absorption New supply Vacancy rate

Net absorption totalled 4,500 sq.m. in Q1 2026, down from 13,300 sq.m. in the previous quarter. On a rolling annual basis, net absorption in the Adelaide CBD reached 24,800 sq.m. Nevertheless, the headline vacancy rate decreased 0.3 percentage points (pps) over the quarter to 14.6%.

No major developments completed over the quarter. However, there is currently one project under construction in the supply pipeline, totalling 21,700 sq.m., and three projects with plans approved, totalling 101,000 sq.m. The project under construction is Market Square - an office tower developed as part of a broader mixed-use residential and retail development by ICD Property on Grote Street. The building is 58.5% pre- committed and expected to complete in Q3 2026.

Average prime net face rents increased 2.7% over the quarter to AUD 510 per sq.m. p.a. and reflected year-on-year growth of 3.4%. Average prime net effective rents increased 3.3% to AUD 195 per sq.m. p.a., with year-on-year growth of 2.2%. Average prime midpoint yields were unchanged at 7.75% on a quarterly and annual basis. There remains a spread between buyer and vendor expectations, but this gap has narrowed over the past 12-months.

Outlook Demand levels in the near-term are expected to remain positive, supported by some large businesses expanding and centralising to the Adelaide CBD. However, net absorption is likely to be below the robust levels of the last three years. Prime office yields have reached the end of the softening cycle and are forecast to stabilise over the short term. Investors are likely to remain selective in terms of potential acquisitions amidst ongoing broader global economic uncertainty.

Canberra

Research

Canberra

Office | Q1 2026

Historical supply and demand trends

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.

Fundamentals

2025 net absorption −54,400 sq.m.

2025 completions 50,000 sq.m.

Vacancy rate 10.5%

Gross effective rent AUD 373 per sq.m. p.a.

Rent growth Y-o-Y 3.5%

Stage in rental cycle Rents rising

-9%

-6%

-3%

12%

-90

-60

-30

120

150

2021 2022 2023 2024 2025 YTD 2026

s.m. (thousands)

Net absorption New supply Vacancy rate

• Q1 2026 net absorption totalled -54,400 sq.m., with vacancy at 10.5%

• Completions totalled 50,000 sq.m, while 246,000 sq.m. remains under construction with high pre-commitment.

• Prime gross effective rents increased 5.0% to AUD 373 per sq.m. p.a., with incentives unchanged.

Canberra recorded negative net absorption of -54,400 sq.m. in Q1 2026, driven by large occupier consolidations (>1,000 sqm), bringing total net absorption over the last 12-months down to -80,300 sq.m. As a result, the headline vacancy rate increased by 0.1 pps to 10.5%, up 1.3 pps year- on-year from 9.2% in Q1 2025.

50,000 sq.m. of office stock completed in Canberra over the quarter, while 111,100 sq.m. was withdrawn for refurbishment, helping to offset vacancy. Despite consolidation activity pushing up vacancy, there remains 246,000 sq.m. under construction supported by strong Commonwealth pre-commitment.

Prime gross effective rents increased 0.5% over the quarter to AUD 373 per sq.m. p.a., driven by a slight increase in prime gross face rents, while prime incentives remained unchanged. Canberra's prime gross effective rent is 3.5% higher year-on-year, with growth constrained by a marginal uplift in average prime incentives, outstripping strong gross face rent growth.

One transaction totalling AUD 6.5 million was recorded in Canberra over the quarter. Prime yields softened by 25 basis points at the lower end, resulting in a midpoint yield of 7.25%, within a range of 6.50% to 8.00%.

Outlook

Headline vacancy is projected to continue increase over the medium-term, reflecting ongoing occupier consolidation activity as the Australian public service continues to pursue improved occupational efficiency. Incentive growth is anticipated in line with elevated vacancy, which is likely to further inhibit effective rental growth. Further office completions are forecast over the next 12-months, with an additional 34,700 sq.m. expected to complete by the end of 2026.

Auckland

• Prime sector retains strength.

• Significant growth in prime supply.

• Rent differentiation by grade persists.

Research

Auckland

Office | Q1 2026

The vacancy rate in Auckland's CBD decreased by 50 bps to 16.0% in H2 2025, amounting to 220,109 sqm of vacant office space across all building grades. Vacancy rates in the prime office sector decreased to 10.8%, a drop of 90 bps since H1 2025. In contrast, the secondary office sector saw vacancy rates rise to 22.1%, an increase of 30 bps over the same period.

The recent completion of 30 Daldy Street in Wynyard Quarter, developed by Mansons TCLM and anchored by OneNZ, has significantly boosted the supply of high-quality office space in the Auckland CBD. The expanded supply pipeline provides occupiers with more choices for high- quality space that meets changing workplace preferences, supports sustainability objectives and helps attract and retain talent.

CBD prime average net rents remained unchanged this quarter, holding steady at NZD 615 per sqm p.a. Premium average net rents stood at NZD 718 per sqm p.a. and A-grade average net rents at NZD 513 per sqm p.a., both unchanged from the previous quarter. Rental divergence between property grades persists, with the upper end of B-grade achieving rents of approximately NZD 420 per sqm p.a., while the lower end of B-grade now records rents around NZD 358 per sqm p.a.

Outlook The Auckland CBD office market is undergoing a period marked by both cyclical dynamics and longer-term transformations. Despite a more challenging economic outlook, a renewed sense of momentum is evident among investors and occupiers. Although higher vacancy rates are partly driven by new developments and shifts in how space is used, this scenario creates favourable opportunities for tenants to upgrade to premium office space.

Historical supply and demand trends

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

Fundamentals

2025 net absorption 8,700 s.m.

2025 completions 47,900 s.m.

Vacancy rate 14.3%

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

Rent growth Y-o-Y 1.7%

Stage in rental cycle Growth Slowing

-15%

-10%

-5%

10%

15%

20%

-60

-40

-20

2020 2021 2022 2023 2024 2025

s.m. (thousands)

Net absorption New supply Vacancy rate

Wellington

• Availability rises as occupiers optimise occupancies.

• Office pipeline grows, but pre-leasing remains low.

• Rents hold steady overall, with increasing focus on rising OPEX.

Research

Wellington

Office | Q1 2026

The overall vacancy rate rose to 17.2% in H2 2025, up from 15.0% in H1 2025, an increase of 220 bps. Prime vacancy reached 8.5%, rising 130 bps from H1 2025, while secondary vacancy climbed 270 bps to 19.8% over the same period. Reduced demand for government office space, coupled with the completion of several refurbishment projects, is expected to push vacancy rates higher across all grades, with an overall vacancy rate forecast to reach around 20.0% by 2028.

Precinct Properties recently completed an 11-storey office building at 55-61 Molesworth Street in Wellington's parliamentary district. The New Zealand Ministry of Foreign Affairs and Trade (MFAT) is set to be the anchor tenant. One of the notable buildings expected to undergo refurbishment in 2026 is HSBC Tower, MFAT's previous home, a 26-storey 15,000 sqm office building located at 195 Lambton Quay.

Prime average gross rents remained unchanged this quarter at NZD 756 per sqm p.a., while secondary average gross rents also held steady at NZD 450 per sqm p.a. in the quarter. Prime average gross rents are expected to increase to NZD 759 per sqm p.a. by year-end, representing an increase of approximately 0.4%, driven predominantly by operating expense increases.

Outlook Office vacancy rates have climbed to 17.2% in H2 2025 from 8.8% the previous year. This increase is primarily due to new supply and ongoing efforts by government and private sector tenants to optimise their office space commitments. There is a heightened focus on controlling operating expenses, particularly as insurance premiums and local council rates have risen in recent years. As a result, landlords are increasingly shifting toward net lease structures rather than gross leases wherever possible.

Historical supply and demand trends

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

Fundamentals

2025 net absorption -128,500 s.m.

2025 completions 7,100 s.m.

Vacancy rate 15.8%

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

Rent growth Y-o-Y 1.3%

Stage in rental cycle Rents Falling

-5%

10%

15%

20%

-150

-100

-50

100

150

2020 2021 2022 2023 2024 2025

s.m. (thousands)

Net absorption New supply Vacancy rate

To find out more about JLL services, contact:

Asia Pacific Roddy Allan Chief Research Officer Asia Pacific +852 2846 5790 roddy.allan@jll.com

Greater China Hong Kong Cathie Chung Senior Director - Hong Kong +852 2846 5237 cathie.chung@jll.com

Macau Mark Wong Senior Director +853 2871 8822 mark.wong@jll.com

North Asia Japan Hiroshi Okubo Head of Research – Japan +81 3 4361 1768 hiroshi.okubo@jll.com

Indonesia James Taylor Head of Insight and Advisory +62 81 2831 58937 james.taylor@jll.com

Philippines Janlo Delosreyes Head of Research – Philippines +63 2 902 0888 janlo.delosreyes@jll.com

Malaysia Yulia Nikulicheva Head of Research – Malaysia +60 19 226 4388 yulia.nikulicheva@jll.com

South Asia India Jerry Kingsley Interim Head of Research – India +91 98 8462 1229 jerry.kingsley@jll.com

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

South Korea Minji Park Senior Manager +82 3704 8847 Minji.park@jll.com

Thailand Anawin Chiamprasert Head of Research – Thailand +66 2 624 6425 anawin.chiamprasert@jll.com

Australasia Australia Andrew Ballantyne Head of Research – Australia +61 2 9220 8412 andrew.ballantyne@jll.com

Taiwan Morris Zhao Analyst +886 976 914 599 morris.zhao@jll.com

South East Asia Dr Chua Yang Liang Head of Research and Advisory – South East Asia +852 2846 5790 yangliang.chua@jll.com

Vietnam Trang Le Head of Country and Research – Vietnam +84 8 3910 3968 trang.le@jll.com

New Zealand Chris Dibble Head of Research - New Zealand +64 21 242 9447 chris.dibble@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 Slide 30: Melbourne Slide 31: Brisbane Slide 32: Perth Slide 33: Adelaide Slide 34: Canberra Slide 35: Auckland Slide 36: Wellington

Back Contacts Slide 37 Slide 38

Asia Pacific Office Market Dynamics

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