Rental rates have shown signs of recovery, but this is limited to prime buildings in the best locations. Secondary buildings have continued to witness downward pressure.
The flight to quality that has been witnessed over the last 12 months continues as occupiers take advantage of good quality office accommodation at more affordable prices.
Supply will continue to be absorbed by tenants consolidating their operations and taking advantage of cost saving solutions.
Although the secondary market is expected to continue to struggle throughout 2013 the best buildings will attract the overflow from prime buildings.
Source : Knight Frank