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Despite a challenging start to the year, the Singapore office market ended 2016 on a high note with net absorption at 542,259 sq ft in the fourth quarter of 2016, reported Singapore Business Review, citing CBRE Research.
“That said, vacancy levels held up relatively well, with only a marginal increase from 5.9 percent in Q3 2016 to six percent as at the year-end,” said CBRE.
It noted that the pace of downward rent adjustment also slowed, while rents seemed close to finding support levels.
Meanwhile, renewal deals accounted for the bulk of last year’s transactions. This comes as lower rents saw many tenants taking advantage of the favourable market conditions by restructuring leases, or locking in early renewals at competitive rates.
“Other tenants that have pursued relocation have also been able to secure attractive lease terms, and this has supported some anchor tenant commitments in the new developments,” noted CBRE.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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