CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield
Rental Fees for CBD Grade-A workplaces have increased by 2.1% in 1Q2022, more than the 1.7% growth in the previous quarter, according to a record by Cushman & Wakefield on April 6. This comes as vacancy rates for CBD Grade-A workplaces tightened to 4.6% from 4.9% in the last quarter.
In general, Cushman & Wakefield remains positive on the Singapore office market outlook, despite “boosting drawback dangers”. While it does not anticipate the Ukraine battle to have a straight impact on the Singapore office market, inflationary pressures are anticipated to remain elevated because of greater power prices and supply-chain disruptions exacerbated by lockdowns in China, which is a key business partner for Singapore.
Rents in decentralised office markets also continued to come along. Office rental fees for all qualities in the city edge as well as country sections grew by 1.1% as well as 0.7% q-o-q, respectively. City-fringe office vacancies have actually boosted to 5.5%, while the country vacancy price equaled 5.7%.
Wong Xian Yang, head of research, Singapore, at Cushman & Wakefield, anticipates ongoing recuperation for the decentralised office market, offered commercial decentralisation tasks, spillover demand from the CBD, and also minimal brand-new Grade-A decentralised workplace supply.
Lampard anticipates CBD Grade-An office rental development to trend higher, reaching at around 5% for the entire of 2022.
Nonetheless, the continuous financial unpredictabilities can potentially slow down the rise of interest rates, states Mark Lampard, head of business leasing, Singapore, at Cushman & Wakefield. The resuming of Singapore’s economic situation will also increase occupiers’ confidence to occupy extra office space, he includes.
“Rochester Commons, the only brand-new Grade-A decentralised workplace growth this year, has been mostly pre-committed by Sea Group. The following decentralised Grade-An office growth, Labrador Tower, will just be finished in 2024,” she explains.