Overall, just 65,853sq m of business space was leased in the first six months of 2023, 27 per cent down on the first half of 2022 and almost one-third below the 15-year average.
With about 200,000sq m of new office blocks expected to the be delivered this year, vacancy rates are expected to tick up towards the end of the year, said John McCartney, director of research at BNP Paribas Real Estate. However, he said the construction pipeline would tighten in 2024, which will “see vacancy peaking at fairly manageable levels this year or early next year before beginning to retreat again”.
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