CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield

Lampard prepares for CBD Grade-An office rental development to trend higher, coming in at around 5% for the entire of 2022.

Nevertheless, the continuous economic uncertainties might potentially reduce the rise of interest rates, says Mark Lampard, head of commercial leasing, Singapore, at Cushman & Wakefield. The reopening of Singapore’s economic situation will also boost occupiers’ confidence to take up more workplace, he includes.

“Rochester Commons, the only brand-new Grade-A decentralised office advancement this year, has actually been mainly pre-committed by Sea Team. The following decentralised Grade-An office advancement, Labrador Tower, will only be completed in 2024,” she describes.

Rents in decentralised workplace markets also continued to come along. Workplace rentals for all grades in the city fringe and rural segments grew by 1.1% and 0.7% q-o-q, specifically. City-fringe workplace vacancies have improved to 5.5%, while the suburban vacancy rate rose to 5.7%.

Wong Xian Yang, head of research, Singapore, at Cushman & Wakefield, predicts ongoing healing for the decentralised office market, provided business decentralisation activities, spillover demand from the CBD, and also minimal new Grade-A decentralised workplace supply.

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Overall, Cushman & Wakefield stays positive on the Singapore workplace market expectation, in spite of “enhancing drawback threats”. While it does not expect the Ukraine war to have a direct impact on the Singapore office market, inflationary pressures are anticipated to remain raised as a result of greater power prices and also supply-chain disturbances exacerbated by lockdowns in China, which is a crucial business partner for Singapore.

Rental Fees for CBD Grade-An offices have climbed by 2.1% in 1Q2022, greater than the 1.7% growth in the previous quarter, according to a record by Cushman & Wakefield on April 6. This comes as openings prices for CBD Grade-An offices tightened up to 4.6% from 4.9% in the last quarter.

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