Colliers expects rents to continue declining in 2020, as leasing demand shrunk with the global slowdown. Occupiers should rationalise space requirements and consider a Flex and Core or split-office strategy.
Q2 2020 saw the effects of the coronavirus (COVID-19) outbreak to be more apparent on CBD Grade A rents in Singapore's central business district (CBD), as average rents declined 1.2% quarter-on-quarter (QOQ) to S$10.00 psf. Rents are expected to decline 5% in 2020 before rebounding with the economy in 2021.
New demand was driven mainly by previous commitments from flexible workspace operators, such as JustCo's new branch at OCBC Centre East and the launch of Arcc Spaces's flagship centre at One Marina Boulevard.
With leasing demand expected to continue weakening amid the global economic slowdown, landlords are likely to offer more incentives, creating 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.
