FACTORS AFFECTING OFFICE RENTALS IN AND OUTSIDE THE CENTRAL BUSINESS DISTRICT

Abstract

The emergence of new trends in the office developments has brought about a shift in the emphasis of different criteria in selecting office space both within and outside the Central Business District. In this study, various factors that determine office rentals are examined and analysis is also done on the inter-relationship between these factors. It was found that the Central Business District will remain as a very important hub of activity for certain uses such as banking, trading and legal services. Suburban office developments are generally favoured by accounting and wholesale trading firms which do not need to cluster together to do business. With more office developments completed, occupiers tend to consider several factors at the same time. Hence, the factors are commonly observed to correlate with one another in the determination of office rentals. It is of extreme importance that developers as well as owners of existing and future office developments take into consideration the various factors that affect office rentals. Only with due regard given to these factors, can owners and developers be confident of commanding the level of office rental they want.