Core CBD Premium & Grade A rents extended its growth to S$11.40 per sq ft, supported by healthy demand and tight vacancy.
- In Q4 2022, Core CBD Premium & Grade A rents extended its growth to S$11.40 per sq ft, supported by healthy demand and tight vacancy. However, beneath this continued rise, the office rental market could be facing some undercurrents which might go against this momentum.
- On the investment front, average capital values of this segment increased by 1.7% QoQ, to S$3,050 per sq foot, due to the healthy rental growth and tight occupancy at Grade A core CBD office assets.
- Occupiers are advised to start their search early; especially with some firms looking to reduce their office footprints and seeking replacement tenants, some nicely fitted out options will be made available.
- With demand expected to weaken, we recommend landlords focus on occupancy levels by retaining and attracting tenants, especially those who signed on at lower rents during the pandemic.
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