Robust office space demand set to benefit landowners

Office space owners are looking at good times ahead as rentals are expected to rise due to demand for Grade A office spaces outpacing supply that has been sluggish due to construction delays, long gestation periods and developers' interests shifting to residential.

- PRACHI PISAL

Recent office demand has been driven by global capability centres (GCCs), flex space operators, and domestic businesses. But since 2021, new completions have lagged behind strong leasing activity, pushing vacancy rates lower. For instance, office space is hard to find in central and secondary business districts across cities as vacancy rates stand at low single-digits.