Apac office occupiers still willing to pay higher rents for quality locations: Colliers
Office tenants across the Asia Pacific (Apac) area are still able to pay much higher rents for premium and amenity-rich places, according to an April study record by Colliers.
“Amid this situation, offices today, albeit with much greater workforce versatility, continue to be the epicentre of the work society, with relocation options being underpinned by ability approach and ESG goals,” monitors Mike Davis, managing supervisor of occupier companies for Apac at Colliers.
In Singapore, Colliers notes that a trip to top quality and restricted pockets of room motivated a bounce back in rents in 1Q2024. Core CBD fee and Grade-A rental fees increased 0.7% q-o-q to $11.57 psf monthly after two consecutive quarters of downtrend.
This comes regardless of tenants being much more cost-conscious. Colliers emphasize that top of mind for Apac business leaders is how to optimize resources and maximise savings and drive growth, whilst contending with difficulties like inflation, competition for ability, the need to digitalise, and the climbing stress of environment change.
It additionally accentuate that prioritising sustainability campaigns and steering staff member involvement and contentment will certainly further add to occupiers accomplishing expense financial benefits.
Nevertheless, the market continues to be blended, claims Bastiaan van Beijsterveldt, Colliers’ regulating supervisor for Singapore. While leas in quality buildings in great places are standing up, rental assumptions have actually softened for buildings with consistent jobs and high upcoming additional spots.
He prepares for property owners to encounter enhancing competitors in the near term as more supply is available in, while brand-new versatile job standards might prompt much more firms to right-size according to their demands.
In its report, Colliers outline its top priorities for office occupiers wanting to achieve price financial savings. These include straightening workplace approach to business goals, consolidating room, monetising non-core possessions, getting rid of or sub-leasing extra area, and investing in technological innovation and good services for better space usage.
In the middle of this environment, Colliers believes occupiers could make the most of the uncertainty out there in 1H2024 to discuss their needs, staying clear of positive lease reversions in the coming future.
