With average CBD Grade A rents expected to rebound 5% in 2021 in tandem with the economy, Colliers recommends occupiers to rationalise space requirements and consider value options in CBD Grade A offices in the meantime.
- CBD Grade A rents saw an accelerated decline of 2.3% quarter-on-quarter (QOQ) to S$9.77 psf, while vacancy rates rose to 4.9%.
- Office leasing demand continues to be driven by the flexible workspace sector, with 142,000 sq ft of flexible workspace to open in the near-term including:
- The Great Room is slated to occupy 37,000 sq ft at the new Afro-Asia i-Mark building by Q4,
- The Executive Centre will be expanding into One Raffles Quay in 2021.
- New demand will also be supported by the technology sector, as tech giants such as ByteDance and Twitter expand their headcounts in Singapore.
- Although transaction volumes of office investment fell 36% QOQ, the long-term attractiveness of Singapore to investors continue to hold firm.
Despite more employees returning to office effective 28 September 2020, we expect further rental declines in Q4 as leasing demand continues to shrink with the global slowdown.
Download Colliers' latest quarterly report on the office market as we examine the shifting trends and outlook, with expert recommendations for office occupiers and investors.
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