Knight Frank Singapore’s Post

According to the latest Urban Redevelopment Authority of Singapore (URA) data, office rents in the Central Region eased by 0.9% q-o-q in Q4 2024, marking the second consecutive quarter of decline. Tricia Song, our Head of Research, highlights that leasing sentiment in 2024 was dampened by high fit-out costs, workplace transformations, and ongoing hybrid work arrangements. In addition, the completion of IOI Central Boulevard Towers added 1.2 million sq ft of prime office space, contributing to a supply overhang. Looking ahead, Tricia notes that the trend of prioritising high-quality office spaces will continue in 2025, driven by occupiers' focus on talent attraction and retention. The vacancy rate for prime CBD office space improved to 9.1% in Q4 2024, down from 10.3% in the previous quarter. Read more on EdgeProp Singapore: https://cbre.co/4jAOGaC #CBREInsights

Real Estate Asia: Savills World Research shares that office occupancy rates have increased in Q1/2024 from a year ago. Asia Pacific is the highest at an average of 88%, followed by Europe at 59% and North America at 53%. Singapore’s office occupancy rate has held steady at 94% for Q1/2024 vs Q1/2023.   Alan Cheong (GradStat), Executive Director, Research & Consultancy, Savills Singapore comments, “The occupancy level for Grade A CBD offices in Singapore is likely to remain high for the foreseeable quarters ahead. Although some companies are adopting hybrid and workplace solutions to optimise space usage, thereby reducing their office footprint, for this and next year, the average supply of new Grade A office buildings coming on stream from 2024 to 2027 is about 660,000 sq ft (net floor area), just below the 10-year average of 696,000 sq ft (2014 to 2023). While Grade A office rents and occupancies may hold up well, it is the lower grade and/or older buildings that may bear the brunt of the new office space usage by tenants. For the latter, they may have no choice but to undergo extensive refurbishment or complete redevelopment.”   Read more here: http://sav.li/ago   #savillssg #savillsresearch #officeoccupancy #officespace #APAC #APACofficemarket #occupancyrate #office #Singaporeoffice Zhen Zeng Wen Fang Tai

SINGAPORE: Grade A office rents are expected to go up slightly this year by about 3 per cent, despite new supply of such office space entering the market. Industry observers said smaller companies are driving up this demand, even as several larger firms give up their prime area offices.  SINGAPORE: Grade A office rents are expected to go up slightly this year by about 3 per cent, despite new supply of such office space entering the market. Industry observers said smaller companies are driving up this demand, even as several larger firms give up their prime area offices. #Office #Rent #MicahLimRealEstate

Cost efficiency drives office space decisions in Hong Kong A growing number of companies in Hong Kong are looking for more flexible and adaptable real estate solutions🏙 to help them balance costs and needs, says Fiona Ngan, head of occupier services at Colliers. According to a new survey by real estate services firm Colliers, a growing number of companies in Hong Kong are considering reducing their office space 🏢, with more than a quarter (27%) indicating plans to downsize, up from 21% a year ago. Two-thirds of respondents say cost optimisation is the primary driver behind this trend. Three in five respondents also flagged shrinking business demand as a significant factor. On the other hand, businesses looking to expand their office space cited increasing business opportunities👩💻 in Hong Kong (60%) and inadequate space for current operations (59%) as their main reasons. There is a need for both occupiers and landlords to rethink their strategies to achieve mutually beneficial outcomes, Ngan adds. In the video below, she shares key considerations businesses need to take into account when determining their optimal office space. ❓What other factors should businesses consider when designing their office? Share your thoughts in the comments. 🎞️ Adrian Tay Source: https://lnkd.in/e-5YqsvM #linkedinvideo #property #officespace #hongkong

As 2025 begins, the Singapore Core CBD Grade A office market is poised for significant changes. With IOI Central Boulevard Towers being the last development and no significant new supply expected in the Core CBD (Grade A) for the next three years, the market faces a potential supply crunch. The Core CBD remains a focal point for businesses prioritising real estate strategy as part of their talent attraction and retention efforts. Prime locations like Marina Bay and Raffles Place continue to be highly sought after, reflecting the ongoing demand for premium office spaces. David McKellar, our Head of Office Services, and Tricia Song, Head of Research, share their insights in The Business Times: https://cbre.co/40fZpQb #CBREInsights

A Savills research report shares that Asia Pacific’s office occupancy rates are the highest at an average of 88% the first quarter this year. This is followed by Europe at 59% and North America at 53%. The rates have increased from a year ago with Asia Pacific at 84%, Europe 55% and North America 49%. Singapore’s office occupancy rate has held steady at 94% for Q1/2024 vs Q1/2023.   Alan Cheong (GradStat), Executive Director, Research & Consultancy, Savills Singapore says, “The occupancy level for Grade A CBD offices in Singapore is likely to remain high for the foreseeable quarters ahead. Although some companies are adopting hybrid and workplace solutions to optimise space usage, thereby reducing their office footprint, for this and next year, the average supply of new Grade A office buildings coming on stream from 2024 to 2027 is about 660,000 sq ft (net floor area), just below the 10-year average of 696,000 sq ft (2014 to 2023).    While Grade A office rents and occupancies may hold up well, it is the lower grade and/or older buildings that may bear the brunt of the new office space usage by tenants. For the latter, they may have no choice but to undergo extensive refurbishment or complete redevelopment.”   Read more here: http://sav.li/aej   #savillssg #APAC #APACofficemarket #occupancyrate #officeoccupancy #office #Singaporeoffice Wen Fang Tai Zhen Zeng  

https://lnkd.in/gCjUw8ZC SINGAPORE: Grade A office rents are expected to go up slightly this year by about 3 per cent, despite new supply of such office space entering the market. Industry observers said smaller companies are driving up this demand, even as several larger firms give up their prime area offices.  SINGAPORE: Grade A office rents are expected to go up slightly this year by about 3 per cent, despite new supply of such office space entering the market. Industry observers said smaller companies are driving up this demand, even as several larger firms give up their prime area offices. #Office #Rent #MicahLimRealEstate

DEMAND – The firm office rental market belies the fact that demand remains fragile. Most tenants are looking for lease extensions/renewal, whilst some need to relocate because their landlord wants their space back. A significant number of tenants are expanding out of business centres, but their size requirements are usually quite modest. Whilst the big financial institutions and tech firms (the traditional powerhouses driving demand) continue to reduce their footprint, large space requirements have dwindled. Sectors still active include hospitality, law firms, energy and other professional services. For all the latest updates on the Singapore office market, check out our Q2 Market Update – OUT NOW: https://bit.ly/2SXOicq Want to know the latest rental rate for your current building? Check out our Office Rental Table, which is updated daily: https://lnkd.in/dKix8PX3 Or if you just need some expert advice on anything related to sourcing and leasing office space in Singapore, please do get in touch. We’d love to hear from you.

DEMAND – The firm office rental market belies the fact that demand remains fragile. Most tenants are looking for lease extensions/renewal, whilst some need to relocate because their landlord wants their space back. A significant number of tenants are expanding out of business centres, but their size requirements are usually quite modest. Whilst the big financial institutions and tech firms (the traditional powerhouse driving demand) continue to reduce their footprint, large space requirements have dwindled. Sectors still active include hospitality, law firms, energy and other professional services. For all the latest updates on the Singapore office market, check out our Q2 Market Update – OUT NEXT WEEK. Want to know the latest rental rate for your current building? Check out our Office Rental Table, which is updated daily: https://lnkd.in/dKix8PX3 Or if you just need some expert advice on anything related to sourcing and leasing office space in Singapore, please do get in touch. We’d love to hear from you. #realestate #corporaterealestate #commercialrealestate #commercialproperty #tenants #officeleasing #officemarket #officeforlease #officebuildings #office #singaporerealestate #singaporebusiness #singaporeproperty #singapore

Grade A offices in Bangkok have shown superior performance compared to other segments. During Q1, the prime office sector achieved the highest occupancy rate at 80%. However, Bangkok's overall market occupancy rate experienced a slight decrease of 0.7 percentage points quarter-over-quarter, settling at 77%.