Chart of the Day: CBD Grade A offices vacancy rates improve

Better occupancies were recorded in most micro-markets.

Savills Research & Consultancy reported:

Vacancy rates for CBD Grade A offices improved from 8.1% in Q3/2012 to 7.8% in Q4/2012. Better occupancies were recorded in most micro-markets, expect for the Beach Road / Middle Road and City Hall areas.

The former edged up 0.5% to 4.2% by end-Dec while the latter deteriorated due to the vacant stock in the area more than doubling because Citibank’s vacated space in Millenia Tower.

In general, demand for CBD Grade A office space in 2012 had been healthy with a net take-up of almost 1.3 million sq ft for the whole year.

Net absorption, however, shrank slightly to 80,000 sq ft in the last quarter. As a guide, the net demand in 2012 is equivalent to Marina Bay Financial Centre Tower 3 or half of the Suntec City office towers.