CBD office rents stay flat despite near-full occupancy: report

Grade A+ office rents in the Raffles Place / Marina Bay precinct rose marginally by 0.2%.

Prime office rents in Singapore’s Central Business District (CBD) remained largely unchanged in the second quarter of 2025, despite occupancy levels holding near full capacity.

According to Knight Frank’s latest report, Grade A+ office rents in the Raffles Place / Marina Bay precinct rose marginally by 0.2%, averaging $11.38 per square foot per month (psf pm).

Occupancy rates stayed high, with Raffles Place / Marina Bay at 94.7% and the overall CBD at 93.7%. The slow rental growth reflected a broader market trend where landlords are focused on maintaining occupancy amidst ongoing global economic uncertainty.

Many occupiers are opting to renew leases instead of relocating, largely to avoid capital expenditure. However, there has been some movement in the market. Notable relocations include Prudential Singapore’s move to Labrador Tower and Singlife’s consolidation at Marina One, as well as expansion activity from firms such as Jefferies Financial Group and Quantedge Capital.

A recent Knight Frank survey found that 37.7% of global corporates are prioritising operational efficiency and resilience. Other goals include portfolio right-sizing and increased workplace flexibility—trends that align with current leasing behaviour in Singapore.

Looking ahead, the report noted a limited pipeline of new office supply until 2028, when several major developments are expected to be completed. In the meantime, leasing activity is expected to continue among small and mid-sized occupiers seeking modern, well-located spaces.

Knight Frank forecasts flat rental performance for the rest of 2025, with growth projected in the range of -1% to +2%.