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

A brand-new supply of prime business offices is also expected to be completed this year, raising the existing amount. This consists of IOI Central Boulevard Towers at 2 Central Boulevard, which is expected to generate 1.26 million sq ft of office space, and 33-storey Keppel South Central throughout Hoe Chiang Roadway in Tanjong Pagar.

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At the same time, Yeo prepares for that establishments need to close in this year with “cautious confidence,” given that geopolitical stress cause a considerable risk to business development and procedures. He also anticipates occupancy degrees to continue to be tight at top-notch office complex that can regulate a premium, reared by Singapore’s minimal jobless rate and the city-state’s position as a premier business venue. Knight Frank estimates rental fees to increase moderately in between 1% and 3% in 2024.

Yeo indicates that the demand for prime office spaces stays high due to the fact that Singapore remains to attract international corporations. This is because of the wide pool of skill, tax obligation benefits, a diversified economy and contemporary infrastructure.

The rent growth was maintained by renewals, retaining term 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 occupier approach and services at Knight Frank Singapore, adds in that the renewals were completed at a little higher leas as business decided to hold instead of relocating or developing to prevent capital investment.

Prime office space rental fees in the Raffles Area and Marina Bay district rose to around $11.20 psf monthly (pm) in 1Q2024, a 0.6% raise q-o-q, according to a statement by Knight Frank Singapore released on March 25.

Nevertheless, he believes office leas may flatten out in 2H2024 as technology firms and worldwide financial institutions lay off team and settle service affairs, which could cause portions of office being reverted upon rent expiry.

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