Benefit from Grade A offices
Singapore office rents post sixth consecutive quarter of growth - Market well-positioned for steady and sustainable growth
Singapore’s office leasing market is tracking expectations with rents climbing for the sixth consecutive quarter in 3Q18, JLL’s research show.
Specifically, the gross effective rents of Grade A office space in the CBD edged up 2.3 per cent quarter-on-quarter (q-o-q) in 3Q18 to average SGD 9.93 per sq ft per month.
Occupier demand has been firm, coming from a wide spectrum of industries, although co-working operators remained the single most active space seekers given their expansion spree as they race to gain market share.
On the other hand, good quality office space in the CBD is limited as most new builds are enjoying near full occupancy or commitment rates, while space vacated or to be vacated by relocating tenants has mostly secured replacements. This has continued to put upward pressure on rents.
Singapore’s CBD Grade A office rent is well-positioned for sustainable steady growth in the near and mid-term. The demand and supply dynamics of Grade A office space in the CBD is supportive of continued rent growth, but the availability of good grade office space outside the CBD during this period should keep growth in check and sustainable.
Over the next four years (2019-2022), the CBD will see an average annual new supply of 0.8 million sq ft, slightly under the ten-year historical average net take-up of 0.9 million sq ft. The potential withdrawal of ageing assets for redevelopment will further tip the balance in favour of demand, and support rents.
A government land sales programme that places greater emphasis on office land supply outside the CBD will complement today’s demand and supply dynamics to bring about steady and sustainable CBD office rent growth, encourage a market-led urban rejuvenation and drive decentralization.
Source: https://www.jll.com.sg/en/newsroom/singapore-office-rents-post-sixth-consecutive-quarter-of-growth
Investors can invest into Capitaland Commercial Trust to benefit from Grade A office demand.
Their assets include:
1. Capital Tower, a Grade A office tower
2. Asia Square Tower 2, a Grade A office tower
3. Six Battery Road, a Grade A office tower
4. One George Street (50% interest), a Grade A office tower
5. CapitaGreen, a Grade A office tower
Capitaland Commercial Trust pays dividend yield of 5%.
Singapore’s office leasing market is tracking expectations with rents climbing for the sixth consecutive quarter in 3Q18, JLL’s research show.
Specifically, the gross effective rents of Grade A office space in the CBD edged up 2.3 per cent quarter-on-quarter (q-o-q) in 3Q18 to average SGD 9.93 per sq ft per month.
Occupier demand has been firm, coming from a wide spectrum of industries, although co-working operators remained the single most active space seekers given their expansion spree as they race to gain market share.
On the other hand, good quality office space in the CBD is limited as most new builds are enjoying near full occupancy or commitment rates, while space vacated or to be vacated by relocating tenants has mostly secured replacements. This has continued to put upward pressure on rents.
Singapore’s CBD Grade A office rent is well-positioned for sustainable steady growth in the near and mid-term. The demand and supply dynamics of Grade A office space in the CBD is supportive of continued rent growth, but the availability of good grade office space outside the CBD during this period should keep growth in check and sustainable.
Over the next four years (2019-2022), the CBD will see an average annual new supply of 0.8 million sq ft, slightly under the ten-year historical average net take-up of 0.9 million sq ft. The potential withdrawal of ageing assets for redevelopment will further tip the balance in favour of demand, and support rents.
A government land sales programme that places greater emphasis on office land supply outside the CBD will complement today’s demand and supply dynamics to bring about steady and sustainable CBD office rent growth, encourage a market-led urban rejuvenation and drive decentralization.
Source: https://www.jll.com.sg/en/newsroom/singapore-office-rents-post-sixth-consecutive-quarter-of-growth
Investors can invest into Capitaland Commercial Trust to benefit from Grade A office demand.
Their assets include:
1. Capital Tower, a Grade A office tower
2. Asia Square Tower 2, a Grade A office tower
3. Six Battery Road, a Grade A office tower
4. One George Street (50% interest), a Grade A office tower
5. CapitaGreen, a Grade A office tower
Capitaland Commercial Trust pays dividend yield of 5%.
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