Average occupancy of the city's office market remained stable in the first quarter of 2017In the first quarter, a new Grade B office building has been completed, adding 23,000 square meters to the market. Both Grade A and B office market saw positive growth.
Two Grade A office buildings are expected to be completed in the third quarter, supplying more than one third of the total new leasing area for 2017.
Average occupancy of both grades remained stable, with Grade A’s occupancy rate rising by 2% from the fourth quarter of 2016 and by 5% on quarter to 96%; while Grade B’s rate increased 1% from the fourth quarter, but still stood at 95% of the same period last year.
Total net absorption of the market saw record growth at 29,000 square meters, up 66% from the previous quarter and up 723% from the same period last year. Of this, Grade B occupied 88% with nearly half of the leasing area of the newly-operated buildings, while Grade A saw positive recovery from the negative rate of the previous quarter, with some 3,400 square meters in the first three months of the year.
The average rents of both grades remained stable on a quarterly basis but recorded an increase on a yearly basis, with Grade A rising by 5% and Grade B increasing by 1%./.