cbd office rental ratesDecember 15, 2021
Explore our top picks of office buildings for rent in Harbourfront here !
The historical city centre, City Hall is still considered a commercial hub densely populated with commercial and office buildings today.
Also part of the Central Business District, the Tanjong Pagar and Shenton Way district is a popular location well-connected with several MRT stations and various bus routes close by. More tech, media and telco tenants dominate this area, along with flexible workspace operators such as WeWork and JustCo.
Alexandra, One North & Buona Vista (District 05)
* All rental rates are on a per sqft per month basis, based on asking prices by the landlords which are usually slightly negotiable. The data includes office buildings, shophouses, business parks and B1 offices.
At the fringe of Singapore’s CBD, Harbourfront is a well-located hub with excellent accessibility via Harbourfront MRT. Office rental rates are fairly affordable for Grade A office buildings such as Harbourfront Towers, and some offices even come with sea views.
Other companies choose to be located in Tampines Central (eg, Tampines Plaza, CPF Tampines), where most of the office buildings are located without business park restrictions.
Located in the East of Singapore, away from the city centre, prices of offices are becoming increasingly attractive with office rental rates almost half of those in the CBD.
From a large swampland, this area was developed into Singapore’s largest commercial and industrial estate. Jurong East is the commercial hub of the West, with offices centred around the MRT. Furthermore, Singapore’s International Business Park is located here.
This is a quieter district close to the CBD, with a mix of office spaces alongside private housing areas.
Changi Business Park is a popular choice for tenants in banking and finance, with many financial institutions choosing to set up their IT or backend offices here. Average office rental rates at Changi Business Park are approximately $4.50PSF.
CityHall, Clarke Quay, Promenade (District 06)
Due to its central location, CityHall and Promenade areas command high office rental rates. This is especially so for premium buildings such as Centennial and Millennial Towers. Suntec City is also a popular office location for many companies. The office tenants of these buildings also get to enjoy excellent views of the Marina Bay, Singapore Sports Hub, Marina Bay Sands or city views, depending on which direction the office is facing.
The second consideration is the type and “grade” of the office. While there is no official grading system, in general we categorise the nicer and newer buildings grade A; these buildings naturally come with a higher price tag.
The data provided in the above tables are for reference only. We suggest you consult a real estate professional before making a transaction. For a recommendation of an office space consultant, contact us here with your office requirements. The service is absolutely FREE.
The monthly rent is calculated by taking the $ PSF rental rate (i.e. per square foot per month) multiplying by the total floor area of your rental space (in square foot).
Paya Lebar has been transformed in the recent years into a commercial hub of the East. Most of the office buildings are concentrated around Paya Lebar MRT. The highest office rental rates are for Grade A office buildings near the MRT.
Tanjong Pagar, Chinatown (District 02)
Explore our top picks of office buildings for rent in Raffles Place here !
Table of Contents.
Explore our top picks of office buildings for rent in this district here !
Office options here range from Grade A office to various building such as Westgate Tower to various B1 and Business Park options in the area.
While Orchard Road may be Singapore’s premier shopping destination, it is also a recognised commercial area due to its close proximity to CBD and its broad range of shops and amenities.
This district forms the core of Singapore’s Central Business District (CBD), with locations encompassing Cecil Street, Church Street, Collyer Quay and Marina Bay area. Office rental rates in this area can range quite widely, depending on the office grade. This is also the district in which office tenants get a chance to find offices that enjoy fantastic views of the Marina Bay, Marina Bay Sands and the Singapore Flyer.
Ms Michelle Tee, Director, Research & Consultancy, JLL Singapore, adds: “ Singapore’s economic growth continues to spur business expansion in growth sectors such as fintech, asset management and healthcare. This would also translate to a rise in demand for office spaces as businesses would need to increase hiring and accommodate the rising headcount to cope with expansion.”
Affirming that Singapore’s office leasing market is on the mend, CBD Grade A office rents rose a second consecutive quarter in 3Q21 and at a slightly accelerated pace than the second quarter, as JLL’s preliminary estimates showed.
Ms Tay Huey Ying, Head of Research and Consultancy for JLL Singapore says: “As we expect the government to focus on developing suburban hubs to bring jobs closer to homes, there is likely to be little or no office land releases in the CBD in the short to medium term. Guoco Midtown and Central Boulevard Towers are likely the last of fresh office injections on greenfield land within the CBD. Beyond that, we may see a reduction in office spaces as more older buildings are converted to mixed-use developments to take advantage of the CBD Incentive Scheme.”
The research report addresses common questions about the relevance of offices in a post-pandemic world and discusses new drivers of demand for Singapore’s office space. It also reveals that CBD Grade A office stock is reaching a steady state, with growth likely to lag behind demand in the medium- to long-term.
Following the 1.2% quarter-on-quarter (q-o-q) growth in 2Q21 that ended five straight quarters of declines, the average monthly gross effective rents of Grade A CBD office space are estimated to have inched up another 1.5% q-o-q to SGD 10.05 per sq ft in 3Q21, from SGD 9.91 psf in 2Q21. Rent growth was broad-based across all four CBD submarkets tracked by JLL.
Ms Tay concludes: “Grade A CBD office rents have already risen by 2.4% in the first three quarters of 2021. With no signs of slowing rent growth, we have upgraded our full-year rent forecast marginally, from 2-3%, to 3-4%. Underpinned by strong demand drivers, this also gives us much reason to believe that Singapore’s office rents will continue to make a good upward run in the near to medium-term.”
Over at Singapore Land Tower where refurbishment works could last for about two years, law firm Lee & Lee reportedly secured a lease to move to 25 North Bridge Road, a premise that is located closer to the Supreme Court building and will allow Lee & Lee to experiment with a hybrid work model in fitting out their new space.
Ms Tee explains: “Market sentiment had generally stayed positive in 3Q21 despite another round of Phase 2 (Heightened Alert) from 22 July to 18 August 2021 where work-from-home returned as the default work mode. Businesses are generally optimistic about the prospects of a successful transit for Singapore to live with endemic COVID-19 given the steady climb in the vaccination rate to above 80% by September 2021.”
JLL is optimistic that demand for office will remain healthy, anchored on its integral role as the primary place of work. Additionally, Singapore remains a safe place to live and operate amid the pandemic, drawing technology firms, wealth management and family offices amongst others, to set up offices in the city.
SINGAPORE, 28 September 2021 – Singapore’s CBD Grade A office rents are expected to stay on a growth trajectory over the next few years, potentially gaining an increase of 25-30% by 2025, according to JLL’s lates t ‘Singapore office rents: a long runway for growth’ whitepaper.
For more information, download ‘Singapore office rents: a long runway for growth’ here.