Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Knight Frank’s report found that occupancy status for office spaces in the Raffles Place and Marina Bay district remained unchanged at 94.7%, while overall CBD occupancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
In a different record, research by Knight Frank suggests prime grade office rents in the Raffles Place and Marina Bay places expanded 0.3% q-o-q to reach an average of $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings total rental development for the initial 9 months of the year to 0.4%.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to top quality space have actually created a two-tier market where more recent, well-connected structures thrive and older stock encounters growing vacancy stress.”
The limited readily available supply, paired with a careful company atmosphere, brought about leasing event being mainly steered by lease renewals, claims Knight Frank. Nevertheless, select occupants, specifically those with expiring leases, are choosing to transfer to more recent, better-quality structures in tandem with right-sizing or measured growth. Instances of these include tech company Zoom Communications relocating from Asia Square Tower to IOI Central Blvd Towers, whilst quantitative trading firm Jane Street is intending to increase its area in the latter.
Rents for prime office in Singapore proceeded expanding in 3Q2025, based upon research study from real estate consultancies. In its latest quarterly office industry report, JLL’s research presents that Grade An office rental fees in the CBD increased 1.3% q-o-q to $11.83 psf each month (psf pm) previous quarter, the biggest quarterly development in 6 quarters.
The higher development was mainly credited to the enhancement of IOI Central Blvd Towers to the basket of properties monitored by JLL. Removing IOI Central Boulevard Towers, CBD workplace rents rose by less than 1%, on balance with the previous 6 quarters.
” Singapore’s office space industry has been standing up well, in part supported by stronger-than-anticipated financial principles and a much more favorable interest rate environment,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
Granted the uncertain worldwide setting, Knight Frank anticipates sentiment to stay careful amongst office occupiers over the next six to 12 months. “Therefore, prime rental development for the last quarter of 2025 is anticipated to stay fairly flat with some marginal growth, with even more of the very same entering into the initial fifty percent of 2026,” the record states.
Looking ahead, JLL prepares for CBD Grade A office rental growth to remain modest for the remainder of 2025, with full-year development predicted to get to roughly 3%. Going into 2026, JLL anticipates office rental development to pick up rate, supported by a tightening up supply pipeline. “As vacancy rates are forecasted to tighten between 2025-2027, whole-floor and multi-floor options will turn into progressively restricted, potentially driving rental rates beyond some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Given the limited office space stock in the next few years, he expects high quality structures to remain virtually completely inhabited as more companies make flight-to-quality moves from older buildings. On the other hand, older and poorly attached structures will face increasing stress to be redeveloped or modernised.
