Keppel REIT Sees High Grade A Office Occupancy In Singapore

SINGAPORE – Keppel REIT recorded high occupancy levels of at least 97.1 percent for its Grade A office portfolio in the city-state during the 3rd quarter, according to local bourse (SGX) filing on Tuesday morning (26 October, SGT).

For instance, as of Q3 2021, Ocean Financial Centre was 97.1 percent occupied. One Raffles Quay (97.2 percent), Marina Bay Financial Centre (97.6 percent), and Keppel Bay Tower (98.5 percent) also witnessed higher occupancy rates.

Comparatively, data from real estate consultancy CBRE shows that average occupancy of core Grade A office space in Singapore’s central business district (CBD) remained stable at 92.1 percent during the period under review. At the same time, monthly rents of such commercial properties rose to S$10.65.

In comparison, average signing rent for Keppel REIT’s Singapore office leases concluded during the first 9 months of the year was S$10.49 psf per month. Meanwhile, average expiring rents are expected to hit S$10.38 in 2022, S$10.87 in 2023 and S$10.68 in 2024.

During the first 9 months of the year, Keppel REIT witnessed about 1.72 million sq ft of committed leases, of which its Singapore properties accounted for 90.6 percent, followed by assets in South Korea (6.3 percent) and Australia (3.1 percent).

By sector, new leasing demand and expansions were led by banking, insurance and financial services (34.5 percent), followed by technology, media and telecommunications (22.0 percent) as well as manufacturing and distribution (18.4 percent).

Furthermore, Keppel REIT revealed that rental collection remained robust at 99 percent during the first 3 quarters of the year, while outstanding rent deferrals stood at about S$0.8 million.