In a recent report released by Colliers International in November, office rental Singapore rates showed a steep increase of 12.1% in 2018 from the start of the year. The reports states that the main reasons are the tight supply of office space and major consolidations by corporations moving to new office spaces. Prices have now reached around $14 PSF for the top premium buildings such as 6 Battery road, Centennial Towers, Capitalgreen and Marina One. The report also states that vacancy for CBD grade A offices in Singapore will stay below 6% in 2019 to 2021.
Local Singapore newspaper, The Strait Times has also reported that Facebook has taken a massive 250,000 sqft of space at Marina One. Other prominent tenanats that have signed deals at Marina One, include PWC, Netflix and Julius Baer. Allianz Insurance has confirmed 50,000 sqft at ASB Tower, while Hilton Hotels will be relocating to their 40,000 sqft of new space at Centennial Towers. These moves are just some of the many recent moves.
The office space rental market Singapore has shifted in favour to the landlords and this has caused panic among many companies seeking new space. Supply of office space at the premium Raffles place location is already very limited to begin with. Right now, the market is witnessing prospective tenants fighting to grab available space now because they know future supply in 2019 to 2021 is very limited.
Dalen Chee, commercial property broker and owner of 1 Commercial Space says “Another reason office rental rates are reaching crazy levels soon is also due to global player Wework gobbling up vast amounts of office space. This creates a space crunch and is good for the existing landlords but not so good for companies looking for large spaces in premium buildings.”
“But in spite of the maddening rush to grab space, there are still value options available in the market. In the past month, we have helped 2 companies relocate to just 2 streets away from Raffles Place, at 30% off that premium rate. We are also having more inquiries from companies wanting to find value without paying that premium.”
How 1 Commercial Space is able to do that is because of an extensive database of landlord listings which are updated daily. These listings are then fed into a program which churns out the listings which match what clients want.
For more info on 1 Commercial Space and their office rental services, please visit their website at www.1commercialspace.com.
Release ID: 448135