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by Cheryl Tay
Activity in the Technology, Media and Telecommunications (TMT) sector has grown across several office markets around the world. In many cases, these companies have offset the lower occupancy rate from the financial services industry, according to DTZ’s Occupier Perspective report.
In Singapore, recent TMT deals include the 9,000 sq m space leased by Google at Marina Bay and the 10,000 sq m space leased by Cisco Systems in Changi Business Park (pictured).
The market’s TMT sector also presently occupies five percent of the total office space taken up in the CBD and nine percent in CBD fringe areas. This is because TMT occupiers usually prefer mid-priced office locations.
In Q3 2012, the annual occupancy cost of TMT companies was US$11,330 (S$13,839) per workstation, a significant 50 percent lower than Hong Kong’s US$22,630 (S$27,642). Data based on Raffles Place has shown that there was a 118,627 sq m market-wide net absorption for the first three quarters.
The growth of Singapore’s TMT sector is attributed to factors such as the government’s strong support in the form of tax incentives, funding and the development of specialised business and industrial parks. Other factors include excellent connectivity with Asia, a highly educated talent pool and a strong legal & IP protection framework, added the report.
Moving forward, Singapore’s favourable environment will continue to encourage TMT companies to set up or expand their operations in the country. Demand from domestic players and international companies in this sector will also continue to support the development of office and business park space.
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