Notable Singapore Office Deals In Q3 2022
SINGAPORE – CBRE revealed that demand for office space in the city-state during the 3rd quarter was boosted by the expansion in the central business district (CBD) by tech companies, non-bank financial firms, and coworking space operators, reported The Edge on Thursday afternoon (20 October, SGT).
The property consultancy said there were several major office rental transactions signed during the period under review. For instance, VP Bank leased 11,000 sq ft at Guoco Midtown, law firm Gibson Dunn took up 15,000 sq ft at One Raffles Quay North Tower, and law firm Stephenson Harwood agreed to occupy 17,000 sq ft at Marina Bay Financial Centre Tower 1. But the biggest office rental deal was Amazon leasing 369,000 sq ft at IOI Central Boulevard Towers.
Other notable developments in Singapore’s office market in Q3 2022 include ByteDance further expanding its office footprint in the CBD and WeWork launching a 220,000 sq ft coworking centre at 21 Collyer Quay.
Moreover, Knight Frank shared that private equity company TR Capital announced in September the opening of its office at CapitaGreen, with its Chief Executive and Founder Paul Robine transferring from Hong Kong to Singapore.
Given the healthy demand for workspace, upcoming Grade A office projects in Singapore’s CBD have seen solid pre-commitment. In fact, Guoco Midtown’s 773,441 sq ft office tower has been preleased as of end-August, while a third of the 1.49 million sq ft IOI Central Boulevard Towers has been pre-committed, disclosed Cushman & Wakefield (C&W).
In light of the robust performance of Singapore’s office sector in the past 9 months, CBD Grade A office market is expected to witness a good full-year growth in 2022, with most real estate consultancies expecting office rents to increase by 5 percent to 10 percent for the whole year.
Furthermore, CBRE expects office space take-up here would surge by 2-fold this year from the roughly 320,000 sq ft registered in 2021.