Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank

A brand-new source of prime offices is even expected to be completed this year, boosting the occurring amount. This includes IOI Central Blvd Towers at 2 Central Blvd, which is expected to bring in 1.26 million sq ft of workplace, and 33-storey Keppel South Central around Hoe Chiang Road in Tanjong Pagar.

The rental fee increase was sustained by renewals, retaining term levels tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the overall CBD. Calvin Yeo, managing administrator of occupant strategy and solutions at Knight Frank Singapore, adds that the revivals were completed at slightly higher leas as business decided to stay rather than transferring or developing to prevent capital investment.

Prime business leas in the Raffles Place and Marina Bay precinct rose to approximately $11.20 psf monthly (pm) in 1Q2024, a 0.6% raise q-o-q, according to a record by Knight Frank Singapore published on March 25.

Meanwhile, Yeo anticipates that businesses should approach this year with “mindful optimism,” considered that geopolitical tensions present a significant risk to service development and procedures. He also anticipates inhabitance levels to continue to be firm at superior office buildings that can regulate a premium, reared by Singapore’s small lack of employment rate and the city-state’s setting as a premier company area. Knight Frank approximates rents to grow moderately between 1% and 3% in 2024.

Emerald Of Katong floor plan

Yeo mentions that the demand for prime office spaces stays steep due to the fact that Singapore continues to entice global firms. This is due to the large pool of expertise, tax obligation rewards, a diversified economy and modern-day facilities.

However, he thinks office space rents may smooth out in 2H2024 as tech firms and global banks lay off team and combine organization operations, which could lead to parts of workplace being returned upon rent expiry.

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