August 2022

Where To Find Office Stock 2022/2023

Where To Find Office Stock 2022/2023

The supply of office space for lease is definitely getting tighter and forward-thinking tenants, with leases coming up for review in the next 18 months, will already be thinking where future stock will be coming from. New developments in the pipeline are very limited indeed, with only three office schemes scheduled for completion within the Financial District in the next 12 months, namely:

Building Area TOP Rental Rate (Approx.)
Hub Synergy Point, Anson Road 117,500 sq ft July 2022 $9.00 per sq ft
Guoco Midtown, Beach Road 770,000 sq ft Dec 2022 $12.00 per sq ft
IOI Central Boulevard, Shenton Way 1,290,000 sq ft Sep 2023 $14.00 per sq ft

Supply is getting tighter

Therefore, tenants will have to also consider which buildings currently have the widest choice available and which buildings will be seeing major anchor tenants relocating, leaving significant voids in the building. Examples in the latter category are outlined below:

Building Tenant Moving Timing Size
Hong Leong Building KPMG Q3 2022 10 floors
MBFC Tower 1 Standard Chartered Bank Q4 2022 8 floors
Centennial Tower SMBC Q1 2023 6 floors
The Concourse Boehringer Ingelheim Q1 2023 2 ½ floors
UOB Plaza II Millennium Capital Q1 2023 3 floors
Parkview Square Toyota Tsusho Q2 2023 2 ½ floors

Tenants should also keep in mind which other buildings still have the widest choice available, which include the following buildings:

Building Space Available Estimated Effective Rate (psf)
30 Raffles Place 4 floors $9.50 - $10.00
78 Shenton Way 3 floors $8.00+
Asia Square Tower 1 3 floors $12.50+
PLUS, Cecil Street / Raffles Place 4 floors $10.00
Twenty Anson 4 floors $9.00

Conclusion

By the middle of next year, tenants could be surprised by the limited amount of choice available, which in turn is likely to drive up rates. The watch word here is plan well in advance and allow a greater degree of flexibility when selecting a preferred location, otherwise your options will be restricted.

For more information, view our latest
Office Market Update


Market Review