This broke the peak in Q1 2015 where rents hit $10.43 psf/mo.
This chart from Cushman & Wakefield showed that Grade A CBD rents rose by 2.3% to $10.61 psf/mo in Q1, surpassing the previous peak of $10.43 psf/mo in Q1 2015.
The growth in rents is expected to maintain momentum in the coming months amidst strong demand from co-working operators and future activity from Chinese insurers who are seeking to grow their Singapore footprint.
“Dominant co-working operators plan to keep expanding to solidify their market positions,” Cushman & Wakefield said, adding that New York’s WeWork is in advanced negotiations to take up 100,000sf at MYP Centre, and is also reported to be leasing 8 floors in Chevron House after the completion of its asset enhancement initiative.
BNI Singapore is also relocating to Prudential Tower, taking up 16,000 sf. Decentralization activity may also increase due to high CBD rents as Bayer is leasing 38,000 sf at Paya Lebar Quarter.
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