2025 Q3 Singapore Office Market Review By Corporate Locations

Office Market Review Q3 2025

Demand for larger spaces has primarily come from companies relocating as part of a ‘flight to quality’—driven by the need to attract and retain top talent, or to improve the convenience of their office location.

Office Market Review

Q3 2025

Contents include:

Supply and Demand
Market Forecast
Recent Relocations

Office Rent Update in 90 seconds

Market Forecast

The majority of current leasing activity is in smaller space requirements. Many tenants are also seeking landlord-fitted premises. Proactive landlords in this segment include IOI, Keppel Land, CDL and M+S. BlackRock pioneered this model at Asia Square Tower 1, though it is less active today.
Supply was already tight and has become even tighter. A substantial wave of new stock is expected in 2028, but until then, securing quality office space will remain a significant challenge—hence the flurry of leasing activity this year.
Rental rates are expected to continue firming due to the supply crunch, with much of the growth driven by new tenants leasing smaller fitted units.
2026 will see the completion of Shaw Tower (480,000 sq ft), while 2027 is expected to bring only a modest trickle of new supply.
Thankfully, there are still options in the market—but these are narrowing quickly. The focus will be on finding smart, well-matched solutions, as the more obvious choices become harder to secure.

Rental Rates

As anticipated, rental rates began to firm in the second half of 2025. Landlords are now less willing to negotiate on quoted face rents, and rent-free periods are becoming shorter as demand strengthens.
That said, some resistance to the latest asking rates remains. However, once a building reaches 95% occupancy, most landlords see little reason to adjust pricing simply to fill the final pockets of space.

Demand

The summary below may give the impression that office space take-up was very strong in the first half of 2025. While that’s partly true, much of the activity involves companies relocating from similar-sized premises into higher-quality buildings—a continued ‘flight to quality’ driven by the need to attract and retain top talent.
There has also been a noticeable number of new set-ups, but these typically commit to modest-sized spaces initially, meaning net take-up is lower than the headline activity might suggest. Nevertheless, this still tightens overall supply, and securing the best options is likely to become more difficult until 2028, when a significant wave of new, high-quality stock enters the market.