Ms. Gagan Singh, Chairperson – Jones Lang LaSalle Sri Lanka
In office real estate, vacancy levels in prime commercial areas play a vital role in deciding who shall have the better bargaining power while executing the transactions. Minimal vacancy levels in commercial pockets give developers an edge while negotiating. Office occupiers always find it tough to find the right office space in such landlord market conditions.
The current situation in Colombo office market is no different. Presently, Sri Lanka has eight Grade A office buildings with a total area of 2 million sq ft, all of which are nearly fully occupied and located in the CBD of Colombo. The occupancy rate of these buildings is as high as 95% as at the end of 2015, up from 60% in 2009.