Office yields were unchanged at 2.63% in Q1 2020 as investors remained prudent towards pricing.
Office net absorption fell from 8.164 ping in Q4 2019 to 6,136 ping in Q1 2020 due to mixed demand across subsectors. Leasing activity continued to be driven by flight to quality relocations, with tech firms and financial services companies the major sources of demand.
Leasing activity over the remainder of 2020 is expected to be led by renewals, with relocations set to decline in the coming months as multinationals postpone plans. Although tenant requests for temporary rent abatements are increasing, most landlords retain a wait-and-see attitude.