The commercial real estate market is undersupplied because the construction of new office buildings has lagged behind the rapid growth in business activity. While residential supply is projected to increase by 50 percent by 2030 the supply of office…
The commercial real estate market is undersupplied because the construction of new office buildings has lagged behind the rapid growth in business activity. While residential supply is projected to increase by 50 percent by 2030 the supply of office space is only expected to grow by 16 percent. This structural imbalance combined with strict regulations requiring mainland companies to have physical office space creates a landlord market with high occupancy and rising rents.
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