Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
A brand-new source of prime office spaces is also expected to be finished this year, increasing the remaining amount. This consists of IOI Central Boulevard Towers at 2 Central Boulevard, that is anticipated to generate 1.26 million sq ft of office space, and 33-storey Keppel South Central throughout Hoe Chiang Road in Tanjong Pagar.
However, he thinks office space leas may straighten out in 2H2024 as tech firms and global banks lay off team and consolidate business affairs, which can bring about sections of office being returned upon contract expiration.
The rental fee buildup was maintained by resumptions, retaining term levels close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the overall CBD. Calvin Yeo, managing director of tenant strategy and solutions at Knight Frank Singapore, includes that the revivals were completed at somewhat greater leas as business decided to stay as opposed to transferring or developing to stay away from capital investment.
Yeo notes that the need for prime workplace remains high because Singapore remains to appeal to multinational corporations. This is due to the broad pool of skill, tax obligation benefits, a diversified economy and modern framework.
Prime office space rents in the Raffles Area and Marina Bay district rose to around $11.20 psf per month (pm) in 1Q2024, a 0.6% surge q-o-q, according to a record by Knight Frank Singapore launched on March 25.
At the same time, Yeo prepares for that organizations must approach this year with “careful optimism,” considered that geopolitical stress present a substantial threat to company development and procedures. He likewise expects occupancy degrees to stay tight at top-notch office buildings that can control a premium, backed by Singapore’s small jobless level and the city-state’s setting as a premier company location. Knight Frank estimates rental fees to grow moderately in between 1% and 3% in 2024.
