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

The rent increase was supported by resumptions, keeping occupancy levels close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the total CBD. Calvin Yeo, managing director of tenant strategy and services at Knight Frank Singapore, adds in that the revivals were done at slightly higher rental fees as firms opted to stay as opposed to transferring or widening to prevent capital expenditure.

A brand-new source of prime office spaces is even expected to be completed this year, raising the existing supply. This includes IOI Central Boulevard Towers at 2 Central Boulevard, that is anticipated to bring in 1.26 million sq ft of workplace, and 33-storey Keppel South Central throughout Hoe Chiang Roadway in Tanjong Pagar.

Prime business rental fees in the Raffles Place and Marina Bay precinct increased to around $11.20 psf per month (pm) in 1Q2024, a 0.6% increase q-o-q, according to a record by Knight Frank Singapore released on March 25.

Yeo indicates that the interest for prime workplace remains steep since Singapore remains to attract global corporations. This is due to the large pool of expertise, tax obligation benefits, a varied economy and modern-day facilities.

Marina View Residences floor plan

Nevertheless, he believes office space leas may flatten out in 2H2024 as technology firms and global banks lay off staff and consolidate service affairs, which could result in portions of workplace being returned upon lease expiry.

Meanwhile, Yeo expects that companies should approach this year with “mindful optimism,” given that geopolitical stress cause a substantial risk to company development and operations. He additionally expects inhabitance degrees to remain firm at quality office buildings that can control a premium, reared by Singapore’s minimal joblessness rate and the city-state’s position as a premier company spot. Knight Frank estimates rental fees to expand reasonably in between 1% and 3% in 2024.