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

Yeo mentions that the interest for prime workplace continues to be steep because Singapore remains to appeal to multinational corporations. This is because of the broad pool of capability, tax rewards, a varied overall economy and contemporary facilities.

However, he believes workplace leas may smooth out in 2H2024 as technology companies and worldwide banks lay off workers and settle service affairs, which could result in sections of office being returned upon contract expiry.

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

A brand-new supply of prime business is even anticipated to be finished this year, raising the occurring amount. This consists of IOI Central Blvd Towers at 2 Central Boulevard, which is anticipated to bring in 1.26 million sq ft of office space, and 33-storey Keppel South Central throughout Hoe Chiang Road in Tanjong Pagar.

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At the same time, Yeo anticipates that companies need to close in this year with “careful optimism,” given that geopolitical tensions cause a substantial danger to business growth and operations. He likewise expects occupancy levels to continue to be strict at top-notch office complex that can control a premium, reared by Singapore’s small lack of employment level and the city-state’s placement as a premier operation venue. Knight Frank approximates rental fees to expand reasonably between 1% and 3% in 2024.

The lease buildup was sustained by renewals, maintaining occupancy levels close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the total CBD. Calvin Yeo, running director of occupant strategy and solutions at Knight Frank Singapore, adds in that the revivals were accomplished at slightly greater rental fees as business preferred to stay put rather than transferring or expanding to avoid capital expenditure.

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