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

Yeo notes that the need for prime workplace continues to be steep because Singapore remains to entice global firms. This results from the broad pool of talent, tax rewards, a varied market and contemporary facilities.

At the same time, Yeo prepares for that businesses should close in this year with “cautious optimism,” considered that geopolitical stress position a considerable danger to service development and procedures. He additionally anticipates tenancy degrees to remain firm at quality office buildings that can regulate a premium, supported by Singapore’s low unemployment level and the city-state’s setting as a premier operation spot. Knight Frank estimates rental fees to grow reasonably in between 1% and 3% in 2024.

The Arden condo

However, he believes workplace rents might smooth out in 2H2024 as technology firms and worldwide financial institutions lay off staff and consolidate business affairs, which can lead to parts of office being returned upon rent expiration.

The lease increase was maintained by renewals, keeping term levels tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the overall CBD. Calvin Yeo, running executive of tenant approach and solutions at Knight Frank Singapore, adds in that the renewals were completed at somewhat higher rents as business preferred to stay put as opposed to relocating or developing to prevent capital expenditure.

Prime business rents in the Raffles Area and Marina Bay precinct rose to an average of $11.20 psf each month (pm) in 1Q2024, a 0.6% surge q-o-q, according to a report by Knight Frank Singapore released on March 25.

A new source of prime business is also anticipated to be finished this year, raising the existing amount. 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 Road in Tanjong Pagar.

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