Office rents set to fall by 5% in 2021

This is before they bottom out and recover next year.

Singapore office rents may decline by around 5% in 2021 before bottoming out and recovering next year, barring new strains of COVID-19 and consequent lockdowns, according to property consultant Knight Frank.

This is amidst an expected 5.3 million square feet(sq ft.) of new supplies island-wide from Q4 2020 to 2023, a 94.1% estimated occupancy for the central business district (CBD), and an average of $10.16 per sq ft. per month overall prime office rents.

Knight Frank said it expects a lower net new demand for office space due to the permanent adoption of rational remote working by many companies, and despite the economic recovery and growing presence of tech companies in the country.

“The rethinking of traditional office space usage in an age of flexible work arrangements, and the casualties of the COVID-19 pandemic as the government withdraws business support measures will likely add to contractionary pressures for office space,” the consultant said in its report.

The report also mentioned that prime grade office rents in the Raffles City/Marina Bay precinct contracted 10.2% in 2020, as rental declines moderated in Q4 to dip by 2% QoQ, compared to the 2.3% decrease in Q3.

Whilst pre-termination space continued to rise to an estimated 330,000 sq ft. in Q4 2020 from 260,000 sq ft. in Q3, occupancy levels for prime grade offices remained supported by these committed leases resulting in a slight 0.2 percentage point decline QoQ in Q4.

Knight Frank noted that the government’s effective handling of the pandemic, as well as its commitment to developing key sectors of the economy will boost Singapore as an office destination.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia