Office markets see ‘positive signs’ amidst precarious COVID-19 situation

These signs include the prevailing tight vacancy in the Grade A market. 

“Positive signs” were observed in the office market for the third quarter of 2021 despite the re-tightening of safety measures in Singapore which led to work from home as default working arrangement.

The first bright spot listed by CBRE Research was the completion of the office component in CapitaSpring which contributed 0.21 mil sq. ft of positive islandwide office net absorption for the third quarter.

Analysts expect technology and non-banking financial services firms to continue to spur leasing activity.

There also have been prevailing tight vacancy in the Grade A market, according to analysts

CBRE reported an acceleration in rental growth in the Grade A segment, and expansion of rent by 1.4% -0-9 to $10.65 psf/month for Q3.

“The outlook for the office market looks positive as the sector is underpinned by tight vacancy,” CBRE said.

“Coupled with the limited number of options over the next three years, and the rapid expansion in demand from the technology sector, CBRE Research expects further rental growth in the mid term,” they added.