Office Market Review

Demand Q4 2023

Demand for office space this year has been ‘tepid’, with many companies still adopting a cautious approach, delaying their real estate decisions and opting for short-term lease extensions.

Demand has diversified but certain sectors remain strong, including logistics and energy companies, along with finance and professional services. It is still the premium and mid-tier buildings that are attracting the most interest from would-be tenants, with the secondary market remaining quiet, although a few tenants are taking advantage of some of the attractive options here.

The newer schemes are filling out well, with Guoco Midtown now around 90% leased out. Occupier interest in IOI Central Boulevard Towers in Downtown is also gaining pace, as this is the only major new project scheduled for completion in the core of the financial district for the next 12 months. It is also one of only three major developments in the CBD over the next four years – the others being Keppel South Central and Shaw Tower.

Demand is fragile, but some sectors remain strong