Singapore holds 10th spot in global prime office cost ranking

CBD Grade A vacancy fell to 5.6% as expansion deals dominate global leasing activity.

Singapore ranks 10th globally for annual net effective occupier costs, with Hong Kong and Tokyo remaining Asia-Pacific's most expensive office markets, according to Savills' latest Prime Office Costs report.

Singapore's annual net effective occupier cost stands at $202.81 (US$158.52) per square foot. The global findings are broadly consistent with trends observed in Singapore, where CBD Grade A office vacancy fell to 5.6%, reflecting continued demand for premium office space.

"Coupled with the limited supply of new office developments, premium office buildings continue to record healthy occupancy levels and rental growth. Leasing activity has also been supported by pockets of expansion demand from the financial services and hedge fund sectors," Alan Cheong, executive director of Research and Consultancy at Savills Singapore. 

The findings come alongside Savills' latest Market Makers report, which shows that expansionary leasing accounted for 58% of major office transactions globally in the first half of 2026, signalling growing occupier confidence. Only 5% of top office deals involved occupiers reducing space, whilst the share relocating or renewing at a similar footprint fell to 37% in H1 2026, down from 44% in H2 2025.

Savills examined the top 10 deals by size in 47 cities around the world for its H1 Market Makers report. Flexible office providers were the occupier group most likely to expand their space in the first half of 2026, with 78% of their deals representing expansions. More than half (56%) of these deals were for new office space within markets where they already have a presence, suggesting flex providers are deepening their footprint in selected cities.

AI companies are emerging as one of the fastest-growing occupier groups in the prime global office market, accounting for 17% of all prime technology sector deals in H1 2026, up from 3% in H1 2024. Savills says every single deal by an AI business in H1 2026 was expansionary, reflecting the sector's rapid growth, significant capital investment, and the accelerating demand for talent. AI leasing activity remains heavily concentrated in a handful of established innovation clusters, dominated by San Francisco, but Seattle and London's West End have also seen notable activity in the first half of the year.

Net all-in prime office occupier costs, rent plus fit-out costs, rose 1% in Q2 2026, bringing the year-on-year change to 5.3%. EMEA and Asia-Pacific each recorded rises of 0.5%, while North America rose 2.1%. Cities with significant quarterly cost increases include San Francisco at 7.7%, Downtown New York at 5.6%, Washington DC at 4.0%, Seoul at 3.8%, and Melbourne at 3.6%.

"There are some notable markets witnessing a slowing pace of occupier cost growth for best-in-class offices, including primary markets in mainland China, which are experiencing slower demand and increased availability as new developments and refurbishments complete. This new inventory is creating pockets of opportunity for businesses to access high-quality space at a more moderate cost," said Rick Schuham, CEO of Global Occupier Services at Savills.

($1.2794 = US$1)