CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield
Rental Fees for CBD Grade-An offices have risen by 2.1% in 1Q2022, higher than the 1.7% growth in the previous quarter, according to a record by Cushman & Wakefield on April 6. This comes as openings prices for CBD Grade-A workplaces tightened to 4.6% from 4.9% in the previous quarter.
Nonetheless, the ongoing financial unpredictabilities might potentially slow the surge of rate of interest, says Mark Lampard, head of business leasing, Singapore, at Cushman & Wakefield. The reopening of Singapore’s economy will likewise improve inhabitants’ confidence to use up more office, he includes.
Generally, Cushman & Wakefield remains positive on the Singapore office market outlook, in spite of “boosting downside risks”. While it does not anticipate the Ukraine battle to have a direct effect on the Singapore office market, inflationary pressures are expected to stay raised because of higher power costs and also supply-chain interruptions aggravated by lockdowns in China, which is an essential business companion for Singapore.
Lampard expects CBD Grade-A workplace rental development to trend greater, reaching at around 5% for the whole of 2022.
“Rochester Commons, the only new Grade-A decentralised office development this year, has been mostly pre-committed by Sea Group. The next decentralised Grade-An office growth, Labrador Tower, will only be finished in 2024,” she explains.
Rental fees in decentralised office markets also continued to come along. Office rents for all grades in the city fringe and also suburban sectors grew by 1.1% and 0.7% q-o-q, specifically. City-fringe workplace vacancies have improved to 5.5%, while the country vacancy rate equaled 5.7%.
Wong Xian Yang, head of research, Singapore, at Cushman & Wakefield, predicts ongoing recuperation for the decentralised office market, provided commercial decentralisation tasks, spillover demand from the CBD, as well as limited brand-new Grade-A decentralised office supply.