JLL: Rental and sales prices for Grade A office buildings next year are expected to decrease by more than 10%, can be slightly renovated to retain tenants.

According to the latest research report released by CBRE, approximately 1 billion square feet, nearly half (44%) of Grade A office buildings in Hong Kong have an age of over 30 years. This proportion is expected to increase to 55.1% by 2030, and by 2035, about one-fifth of Grade A office spaces may face functional obsolescence, making it difficult to attract tenants. The report mentions that by 2026, Grade A office prices and rents will decrease by more than 10%, and for commercial buildings over 30 years old that lack maintenance, the decline in value could be as high as 20%.