Office Market Review
Top prime rates for premium Grade A buildings have softened from a high of $14.00 per sq ft a year ago, to around $11.50 - $12.00 per sq ft. Average prime rates in the Raffles Place area are in the region of
$9.50 per sq ft. Office rates in the Robinson Road / Shenton Way area are in the $7.00 - $8.50 per sq ft bracket…
- Market still dominated by tech firms and the financial services / investment sector, as well as displaced tenants looking for new office premises.
- Demand for co-working space to continue with hybrid solutions proving popular.
- Ample choice of supply at the moment and the amount of shadow space is increasing, due to companies rightsizing.
- Supply will begin to tighten later in the year.
- Only two sizeable office developments due for completion this year in the CBD (CapitaSpring and Afro-Asia iMark)
- Rates to soften by 7% across the board, but rate of decline will slow down later in the year as supply contracts.