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Singapore remains a top legal hub in the world, particularly for arbitration, dispute resolution and intellectual property, according to a report published by Colliers International on Tuesday (10 Apr).
The city-state currently houses 48 of the “Global 100” law firms, up from 40 in 2016-2017 and 36 in 2015-2016, said the property consultancy.
Based on its data, around 94 percent of these international law firms are situated in the core CBD area, occupying about 4.5 percent of the Grade A office buildings there.
Recent leasing transactions by multinational law firms include a 7,449 sq ft space in Marina One taken up by CMS Cameron McKenna Nabarro Olswang (Singapore) LLP, Ince & Co’s rental of premises measuring 9,000 sq ft at UIC Building, and Reed Smith’s occupation of a 15,000 sq ft space at Ocean Financial Centre.
Moreover, a Colliers-Michael Page study showed that law firms in Singapore benefit from one of the lowest average property cost per fee earner among eight cities in Asia Pacific at US$30,500 per annum. This is significantly lower than the top three most expensive markets – Tokyo (US$50,000), Shanghai (US$50,800) and Hong Kong (US$84,000).
However, occupancy costs in the city-state is rising, with rents of premium and Grade A office space in the CBD up 2.3 percent for the whole of 2017, and this pace of rental growth is expected to accelerate in 2018.
“Prime office rents in Singapore have been soft in the last couple of years, but we saw the market started to bottom out towards the end of 2017, and rents are on their way up owing to firmer economic growth and more positive business sentiment, as well as tighter supply of space,” said Colliers International’s executive director and head of offices services Duncan White.
“We expect CBD premium and Grade A rents to rise at a much faster clip by about 10 percent to 12 percent.” Hence, tenants are advised to pursue early negotiations as the market recovers, White added.
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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