Singapore Office Market Review Q4 2020
• Market dominated by short-term renewals
• Tech firms leading demand: Alibaba, ByteDance, Twitter, Rackspace are all expanding, making Singapore their regional base
• Increasing demand on co-working space
• Rates to soften by 6% – 10% .
• Few new office developments coming on stream in Singapore Central Business District for 2021
• Companies finding ‘right-size’
Many companies working out a hybrid solution .Demand in the market has been patchy for the last six months, whilst most companies are still assessing what the ‘new norm’ will look like post Covid-19. For some companies, working from home has been a huge success, but not so for other companies . Most on hold expansion plans and extended for the short-term. It is likely many companies will work out a hybrid solution with staff alternating between working from a conventional office and working from home or co-working space. The market has been boosted by some ‘artificial demand’ from companies that are being displaced due to the redevelopment of their building. Two such buildings are Fuji Xerox Towers (353,500 sq ft) and AXA Tower (680,000 sq ft). The former is more advanced by several months and many of the tenants are close to finalizing their new location. All tenants in Fuji Xerox Towers have just been served notice and will need to relocate by June 2021. Prudential Assurance will be relocating to UE Bizhub West on Alexandra Road, securing some 60,000 sq ft, and Fuji Xerox will be relocating to a similar location at Mapletree Business City, also off Alexandra Road. GAC Singapore has found new offices leasing a floor in Springleaf Tower, and International Data Group are at the final stages of their selection process.
Amazon takes up 90,000 sq ft in Asia Square Tower 1
Average Grade A Rents $9.77 per sq ft / per month
CBD Vacancy Rate 5.0%
Rental rates available upon request .