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With Great Eastern as its latest tenant, pre-commitment levels at Paya Lebar Quarter (PLQ) have soared from 50 percent to 80 percent before its completion in Q3 2018, reported Singapore Business Review citing DBS Equity Research.
DBS revealed that Great Eastern will lease about 125,000 sq ft of space or four floors at PLQ’s Tower 3. Aside from this, IWG is also in advanced talks to lease around 52,000 sq ft in Tower 1 for Spaces – the company’s lifestyle co-working concept.
Located next to Paya Lebar MRT station, PLQ is an integrated mixed-use development with over 800,000 sq ft of Grade A office net lettable area, 340,000 sq ft of retail space, and 429 residential units at Park Place Residences.
DBS Equity Research analyst Mervin Song noted that signing office rents at the development reportedly stands between $7 and $8 psf per month.
“We believe the high pre-commitment level at PLQ bodes well for the Singapore office market, given earlier concerns that PLQ would affect demand for office buildings in the CBD and act as an overhang over the market,” said Song.
He noted that Frasers Tower – which is slated for completion later in the year, also witnessed healthy pre-leasing demand at 70 percent.
“We remain confident that the Singapore office market remains on a multi-year upturn given modest new supply over the next three to four years,” added Song.
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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