CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield
Rents for CBD Grade-A workplaces have actually risen by 2.1% in 1Q2022, more than the 1.7% development in the previous quarter, according to a record by Cushman & Wakefield on April 6. This comes as openings rates for CBD Grade-An offices tightened to 4.6% from 4.9% in the last quarter.
“Rochester Commons, the only new Grade-A decentralised office development this year, has been primarily pre-committed by Sea Team. The next decentralised Grade-An office growth, Labrador Tower, will just be completed in 2024,” she describes.
However, the recurring economic uncertainties might potentially slow down the surge of rate of interest, claims Mark Lampard, head of commercial leasing, Singapore, at Cushman & Wakefield. The reopening of Singapore’s economic climate will certainly also boost occupiers’ assurance to take up extra workplace, he adds.
Wong Xian Yang, head of study, Singapore, at Cushman & Wakefield, predicts continued recuperation for the decentralised workplace market, offered business decentralisation tasks, spillover demand from the CBD, and restricted brand-new Grade-A decentralised office supply.
Rental fees in decentralised office markets also remained to come along. Office rents for all qualities in the city fringe and suburban sections grew by 1.1% and also 0.7% q-o-q, specifically. City-fringe office openings have boosted to 5.5%, while the country vacancy rate equaled 5.7%.
Lampard expects CBD Grade-An office rental growth to trend greater, coming in at around 5% for the whole of 2022.
Overall, Cushman & Wakefield remains upbeat on the Singapore office market expectation, despite “increasing disadvantage risks”. While it does not anticipate the Ukraine battle to have a straight effect on the Singapore office market, inflationary pressures are expected to continue to be elevated because of greater power prices as well as supply-chain interruptions worsened by lockdowns in China, which is a key business partner for Singapore.