Apac office occupiers still willing to pay higher rents for quality locations: Colliers

Office residents across the Asia Pacific (Apac) region are still ready to pay much higher rental fees for premium and amenity-rich locations, according to an April research file by Colliers.

Nonetheless, the market stays different, claims Bastiaan van Beijsterveldt, Colliers’ regulating director for Singapore. While rents in quality structures in good locations are standing up, rental assumptions have relaxed for structures with persistent jobs and high upcoming additional spots.

“Amid this instance, workplaces these days, albeit with a lot greater workforce versatility, remain the epicentre of the work society, with moving choices being underpinned by skill strategy and ESG objectives,” monitors Mike Davis, handling director of tenant services for Apac at Colliers.

It additionally emphasize that prioritising durability campaigns and steering employee engagement and complete satisfaction will even more contribute to occupiers attaining expense financial savings.

In its article, Colliers maps its concerns for workplace occupiers wanting to attain cost savings. These consist of aligning workplace strategy to business objectives, consolidating room, monetising non-core properties, disposing or sub-leasing excess area, and buying technology and effective services for better area usage.

Arina East Residences floor plan

He expects property owners to deal with growing competitors in the near term as even more supply comes in, while new manageable work standards might prompt much more companies to right-size according to their requirements.

In Singapore, Colliers notes that a trip to top quality and minimal pockets of space prompted a bounce back in rental fees in 1Q2024. Core CBD costs and Grade-A rental fees rose 0.7% q-o-q to $11.57 psf monthly after 2 sequent quarters of downturn.

In the middle of this environment, Colliers believes occupiers can take advantage of the uncertainty out there in 1H2024 to bargain their demands, avoiding favorable rent reversions in the years to come.

This happens despite occupiers being more cost-conscious. Colliers emphasize that top of mind for Apac business leaders is how to optimise assets and maximise cost savings and drive growth, while contending with difficulties like rising cost of living, competitiveness for skill, the demand to digitalise, and the climbing stress of environmental adjustment.

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