Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The higher development was mainly credited to the addition of IOI Central Boulevard Towers to the basket of properties monitored by JLL. Removing IOI Central Boulevard Towers, CBD workplace rents rose by less than 1%, on balance with the past 6 quarters.
Looking forward, JLL prepares for CBD Grade A office rental development to remain reasonable for the remainder of 2025, with full-year growth projected to get to approximately 3%. Going into 2026, JLL forecasts workplace rental development to pick up progress, sustained by a tightening supply pipeline. “As vacancy prices are projected to tighten between 2025-2027, whole-floor and multi-floor options will come to be increasingly minimal, possibly driving rental prices beyond some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Knight Frank’s report found that tenancy levels for office spaces in the Raffles Place and Marina Bay precinct remained unchanged at 94.7%, while general CBD tenancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Rentals for prime workplace in Singapore kept on growing in 3Q2025, based on study from real estate consultancies. In its newest quarterly workplace industry record, JLL’s research shows that Grade An office leas in the CBD increased 1.3% q-o-q to $11.83 psf per month (psf pm) past quarter, the biggest quarterly development in 6 quarters.
Granted the unpredictable international atmosphere, Knight Frank anticipates sentiment to continue to be mindful among office tenants over the next six to one year. “Therefore, prime rental development for the last quarter of 2025 is expected to stay relatively level with some marginal development, with more of the same going into the very first half of 2026,” the record states.
In a separate report, study by Knight Frank indicates prime grade office rents in the Raffles Place and Marina Bay areas expanded 0.3% q-o-q to reach an average of $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings complete rental growth for the first 9 months of the year to 0.4%.
” Singapore’s workplace market has been standing up well, in part sustained by stronger-than-anticipated economic principles and a much more conducive interest rate atmosphere,” states Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
Given the limited workplace stock in the next couple of years, he anticipates quality structures to stay nearly totally occupied as more companies make flight-to-quality moves from older buildings. In contrast, older and poorly linked structures will certainly face increasing stress to be redeveloped or modernised.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, watches that “selective upgrades to quality space have actually developed a two-tier market where newer, well-connected buildings prosper and older supply encounters expanding vacancy pressure.”
The minimal available supply, paired with a cautious business environment, brought about leasing event being mostly driven by lease renewals, states Knight Frank. However, select occupiers, specifically those with ending leases, are choosing to move to newer, better-quality buildings in tandem with right-sizing or measured development. Instances of these include tech business Zoom Communications moving from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading company Jane Street is preparing to broaden its area in the latter.
