Apac office occupiers still willing to pay higher rents for quality locations: Colliers
In Singapore, Colliers mentions that a trip to top quality and restricted pockets of room triggered a rebound in leas in 1Q2024. Core CBD costs and Grade-A rents rose 0.7% q-o-q to $11.57 psf monthly after 2 sequent quarters of downtrend.
This comes in spite of occupiers being more cost-conscious. Colliers emphasize that top of mind for Apac business leaders is how to optimize resources and increase financial savings and drive growth, whilst contending with challenges like inflation, competitors for talent, the demand to digitalise, and the rising tension of temperature shift.
He anticipates property owners to deal with enhancing rivalry in the near term as more source can be found in, while brand-new flexible work standards may urge much more companies to right-size according to their requirements.
Nevertheless, the market continues to be blended, says Bastiaan van Beijsterveldt, Colliers’ managing director for Singapore. While rents in quality structures in great locations are standing up, rental expectations have lightened for buildings with persistent jobs and high upcoming additional spots.
In its statement, Colliers outline its concerns for office tenants looking to accomplish cost savings. These consist of straightening office space strategy to business goals, settling room, monetising non-core possessions, disposing or sub-leasing excess room, and investing in technological innovation and good services for much better space usage.
In the middle of this atmosphere, Colliers believes inhabitants can benefit from the unpredictability in the marketplace in 1H2024 to negotiate their demands, avoiding favorable lease reversions in the coming future.
Office residents across the Asia Pacific (Apac) region are still willing to pay much higher rental fees for quality and amenity-rich places, according to an April research study file by Colliers.
It even highlights that prioritising durability initiatives and steering worker interaction and contentment will certainly further contribute to occupiers achieving cost financial savings.
“Amidst this instance, offices today, albeit with much greater labor force flexibility, continue to be the epicentre of the work culture, with relocation decisions being underpinned by ability strategy and ESG goals,” observes Mike Davis, handling director of occupier companies for Apac at Colliers.
