Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
A brand-new source of prime business offices is also anticipated to be finished this year, boosting the presenting supply. This includes IOI Central Blvd Towers at 2 Central Boulevard, that is expected to generate 1.26 million sq ft of office, and 33-storey Keppel South Central throughout Hoe Chiang Road in Tanjong Pagar.
The lease growth was maintained by resumptions, keeping occupancy status tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the general CBD. Calvin Yeo, running executive of occupant strategy and services at Knight Frank Singapore, includes that the revivals were accomplished at a little greater rents as companies preferred to stay put instead of relocating or developing to prevent capital investment.
Yeo indicates that the interest for prime workplace remains steep because Singapore continues to entice global firms. This results from the broad pool of capability, tax obligation rewards, a diversified economy and contemporary framework.
Prime office space rental fees in the Raffles Area and Marina Bay district went up to an average of $11.20 psf per month (pm) in 1Q2024, a 0.6% surge q-o-q, according to a report by Knight Frank Singapore published on March 25.
Nevertheless, he thinks workplace rents may smooth out in 2H2024 as technology companies and international banks lay off team and consolidate organization operations, which can result in portions of workplace being reverted upon lease expiry.
Meanwhile, Yeo expects that companies need to approach this year with “mindful positive outlook,” given that geopolitical tensions position a considerable threat to company development and operations. He likewise expects occupancy degrees to stay strict at top-notch office complex that can command a premium, reared by Singapore’s low joblessness rate and the city-state’s setting as a premier business enterprise area. Knight Frank approximates rents to grow moderately in between 1% and 3% in 2024.
