How well have the new office schemes leased out this year? The answer is very well indeed. Last year Frasers Tower was the star of the show for obvious reasons, with such illustrious anchor tenants as Microsoft, Total Oil and ABN Amro Bank.
This year it has been an out-of-town scheme that has made many of the headlines in the form of Paya Lebar Quarter. This project got off to a good start last year when pre-leasing agreements were announced for PLQ Tower 3 with SMRT leasing 97,000 sq ft and Great Eastern Insurance leasing 125,000 sq ft. This year it has been Towers 1 and 2 that have been the most active, attracting a variety of tenants covering a wide spectrum of industries from law firms to pharmaceutical to information technology.
Pharmaceutical giant Bayer South East Asia is relocating here from OCBC Centre East in Raffles Place to lease 31,000 sq ft in Tower 1. Law firm RHT Law Taylor Wessing is relocating from 6 Battery Road to secure around 20,000 sq ft. Intellectual Property Office of Singapore has taken up two whole floors, having relocated from 51 Bras Basah Road and property portal Property Guru has leased 28,000 sq ft in Tower 1, moving in from TripleOne Somerset. NTUC Income has leased 55,000 sq ft in Tower 2. Co-working space specialists Spaces (part of IWG) has secured 52,000 sq ft, which will complement other co-working space operated directly by the developer Lend Lease. The scheme is now 85% leased or under negotiation.
Funan in City Hall has been another success story this year. The scheme is split into two towers with the South Tower mainly taken up by Government bodies such as The Attorney General’s Office, Singapore Department of Statistics and Digital Government Office. The North Tower has attracted tenants such as Adidas (from Robinson 77) and Dutch platform payment firm Adyen (from 30 Hill Street) as well as WeWork.
18 Robinson is a top quality space overlooking Raffles Place but has been slightly slower to fill out than other projects, only because the sizes available are more restricted between 4,000 sq ft to 8,000 sq ft (i.e. either half floor or whole floor). New tenants here include Iconiq Capital, CBS Interactive and Aoyama Sogo Accounting, as well as serviced office space operator Regus.
Paya Lebar Quarter — Towers 1 & 2
$8.00 per sq ft (Estimated Effective Rate)
$10.75 per sq ft (Estimated Effective Rate)
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