Colliers recommends occupiers to rationalise space requirements and consider a Flex and Core or split-office strategy.
The impact of the coronavirus (COVID-19) outbreak on Grade A office rents in Singapore's central business district (CBD) was not as apparent in Q1 2020, as average rents remained firm at S$10.09 psf. While we do not expect a major change in rents this year, we forecast rents to decline by 4% in 2021, in view of slower demand and higher supply in 2022.
Vacancy tightened to 3.1% as technology, media and telecommunications (TMT) occupiers and flexible workspace operators continued to drive demand, such as by An Xing Technologies at One Marina Boulevard, and Shutterstock and IRESS Market Technology in 18 Robinson.
Colliers expects the market effects from the COVID-19 pandemic to be more apparent in Q2 2020, presenting opportunities for occupiers to make decisions in a more tenant-favourable environment. Download Colliers' latest quarterly report on the office market as we examine the shifting trends and outlook, with expert recommendations for occupiers.