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

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

Nonetheless, he thinks office rents may smooth out in 2H2024 as tech firms and global financial institutions lay off workers and settle business affairs, which can lead to sections of office space being moved back upon lease expiration.

Hillhaven Singapore

Prime office rental fees in the Raffles Place and Marina Bay precinct went up to an average of $11.20 psf each month (pm) in 1Q2024, a 0.6% raise q-o-q, according to a report by Knight Frank Singapore launched on March 25.

The rent buildup was sustained by resumptions, maintaining term levels close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the general CBD. Calvin Yeo, supervising director of tenant approach and solutions at Knight Frank Singapore, adds that the renewals were done at slightly greater rental fees as companies decided to stay put as opposed to transferring or expanding to keep away from capital expenditure.

At the same time, Yeo anticipates that establishments ought to close in this year with “cautious positive outlook,” considered that geopolitical stress present a significant risk to organization growth and procedures. He likewise assumes occupancy degrees to stay tight at top-notch office buildings that can command a premium, supported by Singapore’s low joblessness level and the city-state’s position as a premier company venue. Knight Frank approximates rental fees to grow reasonably in between 1% and 3% in 2024.

Yeo indicates that the demand for prime office continues to be high because Singapore remains to appeal to multinational corporations. This results from the wide pool of expertise, tax obligation incentives, a varied economy and modern-day infrastructure.

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