A two-speed recovery is emerging in Central’s top-tier offices, prompting landlords to adopt a more hands-on leasing approach, including hiring asset managers, as rental performance diverges.
While much attention has focused on firms taking advantage of lower rents to move back into Central, widening the gap with other districts, data from CBRE showed another divide was widening within the business district itself.
In the first quarter, vacancy in Central’s grade A offices eased to about 9.6 per cent, while rents at top-tier buildings such as The Henderson and the under-construction Central Yards rose about 12.1 per cent, driven by some landmark leases. However, rents rose by only about 1.4 per cent across the broader Central grade A market, highlighting landlords’ struggle to retain tenants and maintain pricing.
That divergence is evident at Nexxus Building, which is located close to Exchange Square and International Finance Centre, where large leases by global funds recently reinforced demand for top-tier space.
Despite a roster of established tenants including Emirates Airline, Rakuten Securities and the Financial Services Development Council, rents at Nexxus Building have come under pressure.