Here’s why it’s the perfect time for firms to snap up premium CBD spaces

The supply pipeline is at a record high.

Now is the time for firms that have been waiting on the sidelines for favourable rates for premium office spaces in Singapore’s central business district.

According to a report by Cushman & Wakefield, overall Grade A rents are expected to continue moderating in the second half of 2016.

The report notes that in 2016, the local supply pipeline for Grade A office space is at a high that will likely not be matched in the next two years.

Meanwhile, Cushman & Wakefield asserts that the take-up of space in the upcoming prime developments in the 2Q16 was mainly supported by the banking and financial sector.

Moving forward, however, the insurance sector will likely be the next driving force behind office leasing activity, given the expected spike in demand for cyber insurance. This is on back of the growing frequency of cyber attacks, as well as the government’s ongoing Smart Nation initiative.