Apac office occupiers still willing to pay higher rents for quality locations: Colliers
Office occupiers around the Asia Pacific (Apac) region are still able to pay increased rents for top quality and amenity-rich places, according to an April study report by Colliers.
In Singapore, Colliers indicates that a trip to top quality and restricted pockets of area triggered a rebound in rental fees in 1Q2024. Core CBD costs and Grade-A rents increased 0.7% q-o-q to $11.57 psf each month after two sequent quarters of downtrend.
In its article, Colliers chart its priorities for office space occupiers aiming to accomplish cost savings. These include lining up office space strategy to business objectives, combining room, monetising non-core properties, disposing or sub-leasing extra room, and investing in technology and good services for far better area usage.
Nevertheless, the market stays blended, claims Bastiaan van Beijsterveldt, Colliers’ managing supervisor for Singapore. While rental fees in quality properties in excellent places are holding up, rental assumptions have actually lightened for structures with consistent jobs and high upcoming additional spaces.
This happens regardless of tenants being extra cost-conscious. Colliers feature that top of mind for Apac business leaders is how to optimise resources and increase financial savings and drive growth, while emulating challenges like rising cost of living, competitors for ability, the need to digitalise, and the rising stress of climate adjustment.
He expects landlords to deal with increasing competition in the near term as more source comes in, while new versatile job guidelines may prompt a lot more companies to right-size according to their demands.
In the middle of this environment, Colliers believes occupiers can capitalize on the uncertainty in the market in 1H2024 to bargain their needs, preventing positive rent reversions in the coming future.
It additionally emphasize that prioritising durability initiatives and driving worker engagement and satisfaction will certainly even more contribute to occupiers attaining price financial benefits.
“Amidst this scenario, business offices these days, albeit with much higher workforce versatility, stay the epicentre of the work society, with moving options being underpinned by talent technique and ESG objectives,” observes Mike Davis, supervising director of inhabitant companies for Apac at Colliers.
