This was due to the renewal of two anchor tenants.
DBS Bank reported that Suntec REIT office’s average rent decreased to $8.03 per square foot per month (psf/mth) in 4Q2017, from a range of $8.35 to $8.66 psf/mth in 9M2017. This was due to the renewal of two anchor tenants, causing about 5% decline in rental reversion.
11.3% of leases are ready for renewal, and Suntec REIT is in final negotiations for about 20% of leases expiring in 2018.
On a positive note, Suntec REIT office’s rate of occupancy continues to increase, from 98.4% in 3Q17 and 98.9% in 4Q17.
According to DBS Research, there are currently higher enquiries for office space, and tenants are more eager to forward renew leases, resulting to an improvement in rental reversions.
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