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Available supply reduced q-on-q across the market largely due to sustained attempts to reclassify vacant office buildings in to alternative use classes, notably hotels and student accommodation. Despite this, vacancy rates still stand at 15.5% and supply is highly polarised with a lack of the quality product that occupiers are increasingly seeking to drive portfolio transformation. In core sub-markets such as the Zuidas and Centre, supply is actually reducing but in secondary markets surplus space release continues.
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11 September 2012