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

A brand-new source of prime office spaces is also expected to be finished this year, raising the occurring amount. This consists of IOI Central Blvd Towers at 2 Central Boulevard, which is expected to produce 1.26 million sq ft of office, and 33-storey Keppel South Central along Hoe Chiang Road in Tanjong Pagar.

Nevertheless, he believes office space rents might smooth out in 2H2024 as tech companies and global banks lay off staff and consolidate service operations, which can result in portions of workplace being reverted upon rent expiration.

The rental fee buildup was sustained by resumptions, keeping tenancy status tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the general CBD. Calvin Yeo, supervising executive of occupant strategy and answers at Knight Frank Singapore, adds in that the renewals were done at somewhat higher rents as business decided to stay put as opposed to transferring or expanding to keep away from capital expenditure.

Yeo mentions that the need for prime office spaces stays steep because Singapore remains to attract global companies. This results from the wide pool of talent, tax rewards, a diversified overall economy and modern framework.

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Prime office rents in the Raffles Area and Marina Bay district increased to an average of $11.20 psf per month (pm) in 1Q2024, a 0.6% raise q-o-q, according to a record by Knight Frank Singapore launched on March 25.

At the same time, Yeo anticipates that businesses ought to close in this year with “careful positive outlook,” given that geopolitical tensions present a significant danger to organization development and procedures. He likewise assumes inhabitance degrees to stay tight at top-notch office complex that can regulate a premium, backed by Singapore’s low lack of employment level and the city-state’s placement as a premier company spot. Knight Frank estimates leas to grow reasonably in between 1% and 3% in 2024.