Market Research

The next two years, 2026 and 2027, are likely to be particularly challenging for tenants seeking new office space, simply because of the lack of supply and limited choice. This is when occupiers will need the most informed advice, not only to identify the obvious options, but also to uncover the less visible opportunities in the market. Corporate Locations believes that where there is challenge, there is also opportunity.

Tenants may need to be more flexible on location in order to secure the quality of space they require within budget. Apart from Shaw Tower (450,000 sq ft, TOP July 2026), the only other major source of new supply will be 39 Robinson Road, formerly Robinson Point (165,000 sq ft, TOP estimated December 2026). Other buildings currently offering some of the widest choice of available space include Keppel South Central, One George Street and Capital Square.

Most office leasing activity still takes place within the CBD / Financial District, largely because this is where occupiers have the widest choice of buildings. Activity has been brisk in the Tanjong Pagar area, where tenants displaced by the redevelopment of 79 Anson Road have needed to secure new premises.

Keppel South Central and Hub Synergy Point have been among the main beneficiaries of this movement, while ABI Plaza has also seen good activity.

IOI Central Boulevard Tower remains the leading choice for firms pursuing a flight to quality, although the development is filling up quickly. Recent blockbuster deals include Franklin Templeton taking 1½ floors after relocating from Suntec Tower 1, and Virtu Finance leasing a full floor following its move from 1557 Keppel.

Most of the tenants that needed to relocate from HarbourFront Centre and 79 Anson Road as a result of redevelopment have now secured new premises. Mapletree has been particularly successful in retaining many of the HarbourFront Centre occupiers within its own portfolio, most notably at HarbourFront Tower 1 and mTower.

A flight to quality also continues, as companies remain focused on attracting and retaining the best staff. IOI Central Boulevard Tower remains one of the most sought-after options in this category and continues to perform strongly.

Mode rental rates for top Grade A buildings have edged up over the last quarter to just above $14.00 per sq ft. For upper mid-range office space, mode rates remain in the $11.50 to $12.00 per sq ft range, although there is now less room for negotiation. Lower mid-range office space is currently sitting between $8.50 and $9.50 per sq ft.

We still expect rents to rise by around 2.5% to 3% during 2026. The increase might have been greater, but cautious demand has helped keep growth in check.

Over the next few months, the market will also need to watch the wider geopolitical situation, including the Iran crisis, as higher energy costs and weaker business confidence could add to inflationary pressure and weigh on occupier sentiment if instability persists.