Co-working operators remain as the most active space seekers in the area.
The office leasing market sustained its growth for the sixth consecutive quarter in Q3 2018, a study by JLL revealed. Specifically, average rates of Grade A office rents in the Central Business District (CBD) rose 2.3% QoQ to $9.93 psf pm.
“Occupier demand has been firm, coming from a wide spectrum of industries, although co-working operators remained the single most active space seekers given their expansion spree as they race to gain market share,” JLL Singapore head of leasing Chris Archibold said.
Meanwhile, Archibold noted that good quality office space in the CBD is limited as most new builds are enjoying near full occupancy or commitment rates, whilst space vacated or to be vacated by relocating tenants has mostly secured replacements.
The research also found that by end of Q3, CBD Grade A rents saw its largest hike of 18% over six quarters and are a mere 6% below the Q1 2015 peak of $10.56 psf pm. Moreover, the firm’s research saw that the pace of CBD Grade A rent growth has been decelerating for three consecutive quarters, from a recent high of 4.2% QoQ in Q4 2017, to 2.3% QoQ in Q3 2018.
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