>

>

Tenants’ flight to quality puts pressure on Grade A office space rents

By Tan Chee Yuen

/ Knight Frank |

September 30, 2016 9:00 AM SGT

Join our Telegram channel and follow our Facebook for the latest update.

Tenants’ flight to quality has put pressure on rents of Grade A office space, according to Knight Frank’s latest Singapore 3Q2016 office bulletin.

Grade A office rents in the Raffles Place/Marina Bay district fell 2.9% q-o-q in 3Q2016 to between $8.20 and $8.70 psf per month, the largest decline among key precincts within the CBD. Meanwhile, Grade A+ office space in the same area saw a rental decline of 2.1% to between $9.30 and $9.80 psf per month. In Shenton Way/Robinson Road/Tanjong Pagar, Grade A office rents fell the least, declining 1.5% q-o-q in 3Q2016 to between $7.40 and $7.90 psf per month.

In the past two quarters, the pursuit by landlords of upcoming and newer buildings to secure tenants had gained momentum. Thus, several established tenants from Grade A buildings will relocate to Grade A+ buildings in the coming quarters. Vacancy in Grade A buildings will increase in the next two years as these tenants move and put pressure on rents.

Knight Frank expects Grade A offices to see a larger decline in rents and occupancy than Grade A+ offices in the coming quarters. In addition, average office rents are expected to continue falling before bottoming out in 2018.

Tags:

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Sapphire Windows’ Liews: Beyond providing a room with a view

2

Keeping cool in an east-west-facing house with modern glass windows

3

Far East Shopping Centre’s $908 mil en bloc deal aborted

4

Luxury living in the new heart of Bukit Timah

5

Grandson of Genting Group founder leads Cover Projects, carves niche in Singapore’s heritage properties

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00