CapitaSpring To Gain From Return To Office, Recovery In Premium Office Space

SINGAPORE – CapitaSpring is undoubtedly one of the leading new office projects in Raffles Place, as shown by its specifications, rents, and tenants, reported The Edge on Friday morning (25 February, SGT).

For instance, its office spaces, which are situated from level 21 to 49, feature 22,000 sq ft column-free floor plates and 3.2m ceiling height. Firms also have the option to avail inter-floor connectivity.

Roughly 10 percent or 69,100 sq ft of the office space are dedicated to flexible workspace that are spread across various levels in the tower, namely levels 21, 39 and 40. These are equipped with private offices, workstations, and meeting rooms, as well as areas for training, conducting workshops or events. The flexible workspace is managed in collaboration with The Work Project.

“We have designed for these flexible workspaces to be operated as part of the building’s amenities rather than as a standalone business,” said Chris Chong, Chief Executive of retail and workspace (Singapore and Malaysia) at CapitaLand Investment (CLI).

According to Corporate Locations in its Q4 2021 report, “CapitaSpring remains the ‘star of the show’ and is easily the top new office development in the Raffles Place area.”

Recent leasing transactions in the office building include asset management company Millennium Capital Management occupying 2 whole floors collectively measuring 60,000 sq ft. It is relocating from UOB Plaza II. Hedge fund Southern Ridges Capital is also transferring from 18 Robinson Road to CapitaSpring, while PGIM/ Pramerica Financial Asia is relocating from One Raffles Place Tower 2.

Tenants in CapitaSpring come from the property, energy, financial services, commodities, technology, legal, and hospitality services sectors. Major tenants include IBM’s unit Red Hat, which has leased 57,500 sq ft, Sumitomo Mitsui Banking Corporation (70,000 sq ft), and JP Morgan (155,000 sq ft).

Property consultancy JLL has taken up a 23,592 sq ft office on level 35, online trading and investment specialists Saxo Markets leased 14,000 sq ft. Other tenants include global law firm White & Case and American hotelier, Wyndham Hotels & Resorts.

Even the asking rents at CapitaSpring command a premium, with gross rents ranging from S$14 to S$16 psf per month, compared to the average Grade A office rents of $10.50 to $11.75 psf per month in Raffles Place/Marina Bay, based on data from Corporate Locations.

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