CBD vacancy hits record low of 3.3% as rents climb for fifth straight quarter

CBRE Q1 2026 data reveals prime office rents hit $12.40 psf.

Core CBD Grade A office rents in Singapore increased 0.8% quarter on quarter (QoQ) to $12.40 per square foot (psf) per month in the first quarter (Q1) of 2026, marking the fifth consecutive quarter of growth, whilst vacancy fell to a record low of 3.3%, according to CBRE Research.

CBRE said the trend is expected to continue, supported by strong occupier demand and limited supply.

The rental resilience was attributed to “firm occupier demand, as well as the continued compression of vacancy rates,” Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, said, noting that low vacancy reflects a tight market environment across Core CBD Grade A spaces.

Net take-up for prime office space totalled approximately 200,000 square feet in Q1 2026.

Leasing activity was supported by a diverse range of sectors, including commercial banking, wealth management, insurance, and international artificial intelligence firms moving from flexible co-working spaces to dedicated offices, said David McKellar, Head of Office Services and Leasing at CBRE Singapore.

CBRE reported that coworking operators also remained active, expanding to meet demand from start-ups, project teams, and international companies establishing a Singapore presence.

The research firm noted that vacancy declined nationwide to 5.1%, with tightening across Fringe CBD and Decentralised locations.

Large contiguous floor plates above 20,000 square feet remain scarce, with Shaw Towers as the only major office completion scheduled for 2026.

“With limited new Grade A supply entering the Core CBD over the near term, landlords of high-quality buildings are operating in a distinctly landlord-favourable environment. This imbalance between demand and supply is likely to keep rents well-supported throughout 2026,” McKellar said.

“We are cautiously confident that while the volatile external environment may moderate growth, the strong demand and shortage of supply will likely outweigh the risks,” Song added.

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