Photo by Paul Cuoco on Unsplash

How landlords are responding to weakening demand for office

In 3Q23, CBD investment-grade office rents fell for the first time in 10 quarters.

Landlords have taken proactive measures to compete for tenants as demand for office space in Singapore continues to weaken.

According to JLL, more occupiers in Singapore are becoming wary and cost-conscious amidst the prolonged downbeat economic environment. 

In response, landlords have begun subdividing large spaces, providing fitted spaces, and adjusting their rental expectations, amongst others.

Data from JLL showed that rents dropped 0.3% QoQ in 3Q23. In the same quarter, CBD investment-grade office rents fell for the first time in 10 quarters.

“Tenants took advantage of the soft leasing market to negotiate for more favourable rental terms,” JLL said.

“With interest rates remaining elevated alongside a softening leasing market, CBD office assets faced greater reprice pressure in 3Q23,” JLL added.

In the coming quarters, JLL warned that downward pressure on rents will “intensify.”

“Interest rates will remain high and decline in office asset prices will likely be extended,” the real estate expert added. 

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!