Does it even make sense anymore?
Due to my company’s office lease expiring, I’ve been doing some research on the rental rates over the last few months and the I’ve come to realise that the rental rates here are really not making any sense anymore.
My own office’s rental is going up by 80%, while I fret over the rate of the increase I’ve found that what I’m facing is still not as bad as others. A 100% increase seems to be a common thing and 400%-800% is also happening. One foreign bank with a local office is rumoured to be paying around a million dollars of rental every month.
Some retail stores are going at $40 per square feet. And some offices going at $18-$24 per square feet. All these numbers are really not making sense to me anymore. Even run down warehouses are going at $1.60 to more than $2 per square feet at asking. I believe there’s some provision for bargaining in these prices but I’ve never seen such prices before, really crazy.
I wonder how long will prices hold in this range? But with prices already up at this range, I wonder how far down will it go even when it falls?
