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

Yeo mentions that the demand for prime workplace stays steep since Singapore continues to appeal to international firms. This results from the wide pool of expertise, tax obligation benefits, a varied market and modern-day infrastructure.

A new supply of prime office spaces is also expected to be completed this year, boosting the occurring amount. This consists of IOI Central Blvd Towers at 2 Central Boulevard, that is expected to generate 1.26 million sq ft of office space, and 33-storey Keppel South Central along Hoe Chiang Roadway in Tanjong Pagar.

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Nevertheless, he thinks workplace leas might straighten out in 2H2024 as technology firms and global financial institutions lay off workers and settle business affairs, which might result in parts of office being reverted upon lease expiry.

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

On the other hand, Yeo expects that companies need to close in this year with “careful confidence,” considered that geopolitical tensions present a substantial risk to organization development and procedures. He also expects tenancy levels to stay tight at superior office complex that can control a premium, backed by Singapore’s small unemployment rate and the city-state’s placement as a premier company location. Knight Frank estimates rental fees to expand reasonably in between 1% and 3% in 2024.

The lease growth was maintained by renewals, keeping occupancy status tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the general CBD. Calvin Yeo, managing director of tenant approach and solutions at Knight Frank Singapore, adds in that the renewals were accomplished at slightly greater leas as firms opted to stay put instead of transferring or expanding to stay away from capital expenditure.

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