Keppel REIT’s Office Occupancy Rises To 96.8%
SINGAPORE – The committed occupancy of Keppel REIT’s office portfolio increased to 96.8 percent in Q3 2022 compared to 95.5 percent in the preceding quarter, according to the real estate investment trust’s (REIT) latest business update published this week.
Notably, the Singapore-listed REIT owns S$9 billion worth of Grade A office properties. These are strategically situated in key business districts in Singapore, where 78.6 percent of the portfolio are located, while the remainder are in Australia (18.2 percent) and South Korea (3.2 percent).
Keppel REIT revealed that the weighted average lease expiry (WALE) of its office portfolio currently stands at 6.1 years, while the WALE for the top 10 tenants remains long at 10.5 years.
“Leasing demand continued to show positive momentum. Approximately 1,686,100 sf (attributable area of approximately 830,100 sq ft) was committed in 9M 2022, with Singapore making up most of the leases committed,” stated Keppel REIT.
“The weighted average signing rent for the Singapore office leases increased to approximately S$11.474 psf per month for 9M 2022, from S$11.43 psf per month for 1H 2022,” it added in its business update.
Moreover, the total new office leases and expansion leases signed during the first 9 months of the year were distributed across different sectors, with the technology, media, and telecommunications (TMT) industry accounting for 26.1 percent of the figure. Meanwhile, the manufacturing and distribution sector, as well as banking, insurance, and financial services industry made up 19.4 percent and 16.6 percent respectively. Overall, Keppel REIT’s tenant retention rate reached 82 percent during the first 3 quarters of the year.
Furthermore, the REIT announced that both One Raffles Quay and the Marina Bay Financial Centre achieved the WELL Health-Safety Rating by the International WELL Building Institute in September.
As a result, all of Keppel REIT’s Singapore office buildings have obtained the WELL Health-Safety Rating, proving the superb health and safety features of these commercial properties.