Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
The rental fee buildup was sustained by resumptions, retaining occupancy status close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the total CBD. Calvin Yeo, supervising director of tenant approach and services at Knight Frank Singapore, includes that the revivals were done at a little greater leas as companies preferred to stay as opposed to moving or widening to stay away from capital expenditure.
Yeo notes that the need for prime office spaces stays high because Singapore continues to entice multinational companies. This is because of the vast pool of expertise, tax obligation incentives, a diversified economy and modern-day facilities.
However, he believes workplace rents might flatten out in 2H2024 as technology companies and worldwide banks lay off staff and combine organization functions, which could bring about parts of office space being returned upon lease expiry.
A brand-new source of prime business is also anticipated to be completed this year, raising the remaining supply. This consists of IOI Central Boulevard Towers at 2 Central Blvd, that is anticipated to produce 1.26 million sq ft of office, and 33-storey Keppel South Central throughout Hoe Chiang Roadway in Tanjong Pagar.
At the same time, Yeo prepares for that establishments need to close in this year with “cautious positive outlook,” given that geopolitical tensions present a considerable risk to organization growth and procedures. He additionally expects tenancy levels to stay strict at quality office complex that can control a premium, reared by Singapore’s low joblessness level and the city-state’s position as a premier business venue. Knight Frank estimates rental fees to expand reasonably in between 1% and 3% in 2024.
Prime office leas in the Raffles Area and Marina Bay district went up to an average of $11.20 psf each month (pm) in 1Q2024, a 0.6% increase q-o-q, according to a record by Knight Frank Singapore published on March 25.
