More transactions in the coming year led by bargain purchasers taking advantage of some investors needing to revalue, refinance, or sell their assets.

There has been a slight uptick in leasing activity. Most of the activity was for small to medium-sized spaces, approx. 2,500 - 5,000 sq. ft.

Office rentals continued to decline as leasing momentum remained sluggish in Q4. The pressure on landlords has encouraged them to become more lenient. Offering more flexible lease terms, providing capital expenditure, and accommodating renovation works.

The lack of demand this year has forced landlords to lower their rentals causing the overall net effective rents to decline, triggering some activity.

The Grade A office market is experiencing rising vacancy rates due to the pressure of tepid demand and an abundance of stock which has caused overall net effective rents to fall, with Core Central taking the largest hit.

The office leasing market supply in Q1 is still under pressure on account of the lack of demand paired with an abundance of Grade A office space. Market sentiment has improved slightly due to the long-awaited travel normalization.