Office Market Review
Supply Q1 2024
Office supply has become even tighter since the beginning of last year. No new commercial schemes were completed in 2023, other than Guoco Midtown, which was 80% pre-leased by the end of 2022. This has resulted in the overall vacancy rate firming to just less than 4% (2.5% in prime CBD locations).
This is not a particularly healthy situation for tenants, with the obvious lack of relocation choices. However, landlords will be rubbing their hands with glee, making the most of controlling a captive market, except demand is still sluggish.
There are however, still a few opportunities available for larger space users. Some of these will be through shadow space (given up by existing tenants downsizing) and some options will be direct with landlords (space that has been released / returned by previous tenants).
IOI Central Boulevard Tower (West) is currently offering the widest choice of premium Grade A office space (TOP April 2024) in the prime financial district. The supply situation is only likely to begin to be alleviated by Q4 2024 with two important schemes coming on stream, but even these are out-of-town projects. They are Labrador Tower (TOP Q3 2024 – 670,000 sq ft) and Paya Lebar Green (TOP Q4 2024 – 220,000 sq ft).
Two significant schemes coming on stream within the CBD in 2025 are Keppel South Central (TOP Q1 – 500,000 sq ft) and Shaw Tower, Beach Road (TOP Q2 – 435,000 sq ft).
Opportunities still available for larger space users
Office Market Review
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Contents include:
- Recommended Leasing Options
- Latest Rental Rates
- Future Office Developments
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