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While the office rental market has remained stagnant over the past months, fears of rental meltdown have not only subsided but have now turned positive, reported Singapore Business Review citing Savills.
This comes as the Marina One and other upcoming projects are expected to boost leasing activity.
“This mega project, expected to complete in mid-2017 with 1.88 million sq ft. of office space, registered a pre-commitment rate of more than 60%,” revealed Savills.
In fact, new tenants for this project snapped up large floor areas in Q1, with Facebook taking around 250,000 sq ft.
Frasers Tower, which is a new commercial development at Cecil Street that is set to be completed in Q2 2018, has secured The Executive Centre as its first office tenant.
“As mentioned previously, the overly bearish view towards the office rental market did not square with the strong take-up seen in Marina One,” noted Savills.
“Consequently, major landlords of Grade A CBD office buildings regained confidence and took a chance on asking for higher rents, which we believe may hold for the next two-quarters,” it added.
Senior Content Producer, Christopher Chitty, edited this story.
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