January 2021
Singapore Office Market Review
ISLANDWIDE RENTAL GUIDE Pg 2 SUPPLY / NEW DEVELOPMENTS Pg 4 Latest asking rates for 200+ office buildings Current vacancy rate in the CBD at 5%
Photo by Tsuyuri Hara on Unsplash MARKET OVERVIEW / FORECAST
Looking for office space? • Market will be dominated by short-term renewals
Our detailed reports will give you all the information • Tech firms to lead demand: Alibaba, ByteDance, you need, including our guide on the lowest possible Twitter, Rackspace are all expanding, making Singapore effective rates to target their regional base See page 9 • Demand for co-working space to continue
• Rates to soften by 7% – 9% across the board
Celebrating 21 years in Singapore • Very few new office developments coming on stream 1999 – 2020 in the CBD in 2021
• Companies will continue to ‘right-size’
Corporate Locations (S) Pte Ltd Licence No. L3010044A Disclaimer
T +65 6391 5212 The information in this publication should be regarded as a general guide only. Whilst every care is [email protected] taken in it preparation, no representation is made or responsibility accepted for its accuracy or completeness. The rentals mentioned are neither asking rentals nor rentals agreed by property owners, www.corporatelocations.com.sg but only represent the writers views on estimated rentals and is intended as reference only. Office Rental Guide MYP Plaza $6.50 Sunshine Plaza $6.00 OUE Downtown 1 & 2 $9.00 Tanglin Shopping Centre $6.00-$6.20 Official Asking Rates PIL Building $6.50 The Bencoolen $5.50 Robinson 77 $9.00 The Heeren $10.50 S$ per sq ft per month – Robinson 112 $6.80 Thong Teck Building $7.00-$8.00 inclusive of service charge Robinson Centre $10.50 Tong Building $9.00 Robinson Point $8.00-$8.80 TripleOne Somerset $8.50-$8.80 1 January 2021 SBF Centre $6.50+ Visioncrest Commercial $9.00 SGX Centre 1 & 2 $8.50-$9.50 Wheelock Place $11.50 Raffles Place/New Downtown Shenton House TBA Wilkie Edge $9.00 6 Battery Road $13.00 SIF Building $7.20 Winsland House I & II $9.50 6 Raffles Quay $7.50-$8.00 The Globe $6.50 Wisma Atria $9.50-$11.00 18 Robinson $12.00 The Octagon $5.80 20 Collyer Quay $9.00-$12.30 Tokio Marine Centre $8.00-$8.50 Chinatown/River Valley Road 30 Raffles Place $11.00 Tong Eng Building $5.20+ Central Mall Full 55 Market Street $10.50 UIC Building Full CES Centre $5.80 AIA Tower Full Chinatown Point $8.00 Asia Square Tower 1 $14.00 Tanjong Pagar Great World City $7.50 Asia Square Tower 2 $12.00-$13.50 78 Shenton Way Tower 1 $7.00-$8.20 Havelock II $7.50 ASO Building $6.20 78 Shenton Way Tower 2 $9.20 King’s Centre $6.50 Bank of China Building Full 79 Anson Road $8.50 The Central $7.20-$9.80 Bank of Singapore Centre $9.50 100AM $7.30 UE Square $8.50 Bharat Building $6.30 ABI Plaza $6.00 Valley Point $6.50 CapitaGreen $13.50 Anson Centre $4.50 CapitaSpring $14.00 Anson House $9.00 Edge of CBD Capital Square $11.00 AXA Tower $8.80 Alfa Centre $6.80 Clifford Centre $8.00-$9.00 Frasers Tower $14.00 Aperia* $6.00+ Far East Finance Building $7.00 Guoco Tower $11.00-$13.50 Boon Siew Building $5.00-$5.50 Grace Global Raffles $9.20 International Plaza $5.30-$6.50 Central Plaza $7.50 Great Eastern Centre $9.50 Jit Poh Building $4.50-$5.70 Goldhill Plaza $4.80 Hong Leong Building $9.00 Mapletree Anson POA Newton 200 $9.00 Income@Raffles $10.00 MAS Building Full Novena Square $8.00-$8.50 Marina One $13.00 Southpoint $6.50-$7.00 Rex House Full Maybank Tower $10.50 Springleaf Tower $8.20 SLF Building $4.20 MBFC Tower 1, 2 & 3 $13.00 St Andrew’s Centre $5.30 United Square $7.50-$7.80 MYP Centre $11.00+ Tanjong Pagar Complex $3.80 OCBC Centre $9.50 Twenty Anson $10.00 East OCBC Centre East Full AIA Tampines Full OCBC Centre South Full City Hall/Marina Centre/Beach Road ARC 380 $6.50 Ocean Financial Centre $13.00 11 Beach Road $7.10-$7.35 Asia Green $6.00-$6.50 One Finlayson Green $8.20 47 Hill Street $8.50 Changi Business Park $4.00+ One George Street $11.00 5One Central $9.50-$10.50 CPF Tampines $5.20 One Marina Boulevard $12.00 Beach Centre $7.80 Hiap Hoe Building $5.50 One Raffles Place Tower 1 $10.00-$11.00 Bugis Junction Towers $9.20+ NTUC Tampines Point $5.50 One Raffles Place Tower 2 $11.00 Centennial Tower $14.00 Parkway Parade $4.75 One Raffles Quay Towers $13.00 Duo Tower $13.00+ Paya Lebar Quarter $9.00 OUE Bayfront $13.00 Funan Full Paya Lebar Square $5.50-$6.35 PLUS $11.00 Millenia Tower $14.00 Singapore Post Centre $6.80 Prudential Tower $9.00-$10.00 Odeon Towers $7.60-$8.00 Starhub Green* $4.60 Republic Plaza 1 $10.00-$11.80 OG Albert Complex $5.00 Tampines Concourse $4.20 Republic Plaza 2 Full Parkview Square $8.00 Tampines Junction $5.50 Royal Group Building $9.00 Peninsula Plaza $5.50 Tampines Plaza Full Royal One Phillip $9.00 Raffles City Tower $8.00-$11.00 Tampines Plaza 1 $5.50 Samsung Hub $9.00+ South Beach Tower $12.00+ Viva Business Park $3.00+ Singapore Land Tower $10.50 Stamford Court $7.50 The Arcade $6.00+ Suntec Towers 1- 5 $8.50-$10.50 West/Others The House of Eden $7.80 The Adelphi $5.90-$7.20 20 Harbour Drive (formerly PSA Vista) $4.50 UOB Plaza 1 $11.50 The Concourse $8.00 Alexandra Point Full UOB Plaza 2 $11.00 The Gateway East & West $7.50 Alexandra Techno Park* $5.00 ALICE@Mediapolis* $5.50-$6.30 Robinson Road/Shenton Way Orchard Road/Dhoby Ghaut Fragrance Empire Building $5.80-$6.50 71 Robinson Road $11.00 50 Scotts Road $7.50-$8.00 Harbourfront Centre $6.30-$6.90 79 Robinson Road $12.00 51 Cuppage Road $8.00 Harbourfront Tower 1 $7.30-$7.80 80 Robinson Road $8.50 Burlington Square TBA Harbourfront Tower 2 $7.20 108 Robinson Road Full Faber House Full International Business Park Jurong* $4.00+ 110 Robinson Road $6.00 Fortune Centre $6.00 JEM Full 120 Robinson Road $6.50 Forum $8.00 Keppel Bay Tower $8.20 137 Telok Ayer Street $7.50 Goldbell Tower $8.50 Mapletree Business City* POA 150 Cecil Street $6.00-$6.50 Haw Par Centre $7.20 Pacific Tech Centre* $3.00+ 158 Cecil Street $8.00 Haw Par Glass Tower $5.20 PSA Building POA Afro Asia i-Mark $11.00 International Building $8.00 Singapore Science Parks $4.50+ Bangkok Bank Building $5.50 Liat Towers $7.50 The JTC Summit $5.11 BEA Building Full Ngee Ann City $10.00-$11.00 The Metropolis $8.50+ Capital Tower $10.00 Orchard Building $7.50 UE Biz Hub West $6.50 Cecil Court $5.50 Orchard Gateway $9.50 Vision Exchange $5.00-$6.50 City House $8.20 Orchard Towers $4.00 Westgate $6.80-$7.20 Cross Street Exchange $8.50 Palais Renaissance $8.20 Crown@Robinson $7.50-$9.00 Regency House $6.60 * Business Park / B1 space GB Building $5.50-$9.00 Shaw Centre $8.00 Keck Seng Tower $6.00-$6.50 Shaw House $8.50 Manulife Tower $9.00-$10.00 Singapore Pools Building Full Corporate Locations (S) Pte Ltd All rents quoted are asking rental rates and subject to change without prior notice License No. L3010044A In general allow around 10% discount for negotiations for best effective rate www.corporatelocations.com.sg 03 DEMAND Many companies working out a hybrid solution
Demand in the market has been patchy for the last six months, whilst As far as AXA Tower is concerned, it is believed that Lazada are in the most companies are still assessing what the ‘new norm’ will look like final stages of securing three whole floors in5One Central (fka Manulife post Covid-19. For some companies, working from home has been a Centre and Plaza By The Park) amounting to nearly 100,000 sq ft. The huge success, but not so for other companies. Most are biding their timing of the redevelopment of AXA Tower has still not been determined time, put expansion plans on hold and have extended for the short-term. and most tenants want to stay as long as they can. It will mean that It is likely many companies will work out a hybrid solution with staff eventually, nearly 700,000 sq ft in total will have to be absorbed alternating between working from a conventional office and working from elsewhere by those current tenants. home or co-working space. Amazon takes up 90,000 sq ft in Asia Square Tower 1 The market has been boosted by some ‘artificial demand’ from companies that are being displaced due to the redevelopment of their Most recently it has been announced the Malaysian bank, CIMB has building. Two such buildings are Fuji Xerox Towers (353,500 sq ft) and leased over 50,000 sq ft on several podium floors at30 Raffles Place AXA Tower (680,000 sq ft). The former is more advanced by several (formerly known as Chevron House). Boston Consulting Group has also months and many of the tenants are close to finalizing their new location. leased the top two floors of the brand new scheme79 Robinson Road, All tenants in Fuji Xerox Towers have just been served notice and will amounting to 46,700 sq ft, at a rental rate in the low double digits. Both need to relocate by June 2021. Prudential Assurance will be relocating firms will be relocating from Singapore Land Tower, which may in turn to UE Bizhub West on Alexandra Road, securing some 60,000 sq ft, and enable a major refurbishment of that building. Another new tenant to 79 Fuji Xerox will be relocating to a similar location at Mapletree Business Robinson Road is German bank LBBW Singapore, whose offices are City, also off Alexandra Road. GAC Singapore has found new offices currently located in the German Centre at International Business Park, leasing a floor inSpringleaf Tower, and International Data Group are at Jurong. Amazon has taken up 90,000 sq ft in Asia Square Tower 1 the final stages of their selection process. (space given up by Citibank).
*Estimated/target effective rates
$10.50 – $11.25 psf* $12.50 – $13.00+ psf* $9.50 – $10.50 psf*
Units: 3,000 – 25,605 sq ft Units: 706 – 15,194 sq ft Units: 1,200 – 11,500 sq ft
79 Robinson Road Asia Square Tower 1 30 Raffles Place 12 Marina View
$5.50+ psf* $7.00+ psf* $7.50+ psf* $8.50 – $9.50 psf*
Units: from 9,457 sq ft upwards Units: 6,437 – 32,313 sq ft Units: 1,087 – 12,013 sq ft Units: 904 – 24,267 sq ft
UE Bizhub West Mapletree Business City Springleaf Tower 5One Central 450 Alexandra Road 10 Pasir Panjang Road 3 Anson Road 51 Bras Basah Road 04 SUPPLY Estimated to average around 1.28M sq ft over next 4 years
• There is estimated to be around Summary of New Office Developments 2021– 2023 260,000 sq ft of shadow space in the market at the moment, as a result of large space users right-sizing in the face of a Development Location Est. Size sq ft Completion challenging business environment. 351 On Braddell* Braddell Road 260,000 2021 Q1 • Supply over the next four years is HD 139 Cecil Street 85,000 2021 Q1 estimated to average around 1.28M sq ft, Afro Asia i-Mark Robinson Road 182,000 2021 Q2 which is well below the previous ten-year St James Power Station / Dyson HQ Harbourfront 110,000 2021 Q2 average of 1.77M sq ft. Razer HQ* One North Crescent 207,540 2021 Q2 UBIX* Ubi Road 150,000 2021 Q2 • The current overall vacancy rate in CapitaSpring Raffles Place 635,000 2021 Q2 the CBD stands at 5%, which is expected Rochester Commons Buona Vista 205,000 2021 Q4 to grow to 7% by 2023. Hub Synergy Point Anson Road 128,000 2022 Q1 Central Boulevard Towers New Downtown 1,258,000 2022 Q3 One Holland Village Holland Village 81,000 2022 Q4 Guoco Midtown Beach Road 770,000 2023 Q1
*Estimated average effective rate *Depicts B1/ Business Park Space
$10.00 psf* Est. $13.00 psf* $8.00 psf*
Units: 3,000 sq ft – 12,000 sq ft Units: TBC Units: from 5,300 sq ft
Afro Asia i-Mark CapitaSpring HD 139 (fka Cecil House) 63 Robinson Road 88 Market Street 139 Cecil Street
TOP: May 2021 (Est) TOP: June 2021 (Estimate) TOP: January 2021 Building Height: 18-storeys Building Height: 49-storeys Building Height: 16-storeys Average Floor Plate : 12,500 sq ft Average Floor Plate : 22,000 – 23,000 sq ft Average Floor Plate : 5,300 sq ft Total Size: 182,000 sq ft Total Size: 635,000 sq ft Total Size: 85,000 sq ft Nearest MRT: Raffles Place Nearest MRT: Raffles Place Nearest MRT: Tanjong Pagar Tanjong Pagar Features Features Features Full height floor to ceiling windows, efficient · Comprehensive refurbishment recently Raised flooring, square floor plate, column-free, column-free space, 150mm raised flooring, sky completed impressive double height entrance lobby garden on level 51, high specification · Sky garden with swimming pool · Small floor plate allows exclusive floors Major tenants Pre-leased tenants for smaller users The Great Room, Foodpanda JP Morgan, Saxo Bank, Squarepoint 05 SUPPLY cont.
Est. $5.50 – $6.00 psf* Est. $4.50 psf*
Units: 3,000 sq ft – 31,000 sq ft Units: 4,000 sq ft – 45,000 sq ft
Razer Singapore HQ* UBIX* One North Crescent 25 Ubi Road 4
TOP: June 2021 TOP: Q2/Q3 2021 Estimate Building Height: 7-storeys Building Height: 5-storeys Average Floor Plate : 31,000 sq ft Average Floor Plate : 45,000 sq ft Total Size: 207,540 sq ft GFA Total Size: 150,000 sq ft Permitted User 30% offices Permitted Users: High Tech B1 space* $TBC psf* 70% B1 space Nearest MRT: Ubi Nearest MRT: One North 7 mins walk Units: from 2,250 sq ft upwards (sheltered) Features Good ceiling height, full glass façade, Features brand new building Hub Synergy Point 3m floor to ceiling height, 4 passenger lifts in 70 Anson Road rear service core, centralized air-conditioning, * Suitable for IT, fintech, gaming, biopharma, 78 car parking spaces, 54 bicycle spaces automotive sectors TOP: Jan 2022 (estimate) Building Height: 28-storeys Average Floor Plate : 4,500 sq ft Total Size: 128,000 sq ft *Depicts B1/ Business Park Space Nearest MRT: Tanjong Pagar
$4.25 psf*
Units: 4,000 sq ft – 40,000 sq ft
351 On Braddell* Braddell Road
TOP: March 2021 Building Height: 7-storeys Average Floor Plate : 40,500 sq ft (20,000 sq ft per wing) Total Size: 260,000 sq ft Nearest MRT: Braddell (5 mins)
Features 3m floor to ceiling height, ground floor showroom and canteen, centralized air-con, attractive glass façade
*Estimated average effective rate Note this is a high tech B1 industrial building 06 SUPPLY cont.
$8.00 psf* Est. $13.00 psf* $TBC psf*
Units: 8,500 – 22,500 sq ft Units: TBC Units: 6,400 sq ft – 30,000 sq ft
Rochester Commons Central Boulevard Towers Guoco Midtown Buona Vista Raffles Quay Beach Road
TOP: Phase 1 Dec 2021 est. TOP: June 2022 est. TOP: January 2023 est. Building Height: 17-storeys (mixed use) Building Height: 48-storeys (East Tower) Building Height: 30-storeys Average Floor Plate : 22,500 sq ft (offices) 16-storeys (West Tower) Average Floor Plate : 28,000 – 30,000 sq ft Total Size: 205,000 sq ft Average Floor Plate : 21,000 – 25,000 sq ft Total Size: 770,000 sq ft Nearest MRT: Buona Vista Total Size: 1,258,000 sq ft Nearest MRT: Bugis Nearest MRT: Downtown Features Features 3.3m ceiling height, 150mm raised flooring 150mm raised flooring, 3m floor to ceiling Features efficient square column free floor plate, height, excellent natural lighting. · Ultra Large 70,000 sq ft podium floor occupancy loading of 420 people per floor, Scheme incorporates a 135-room hotel · Sky garden with jogging track full-height floor to ceiling windows, emergency and 54,000 sq ft shared learning centre on · 2.9m ceiling height power, dual risers, centralized air-conditioning podium floors. · Full-height double glazed windows
*Estimated average effective rate
RENTAL RATES / VACANCY RATES December 2020
Average Rental / Vacancy Rates Island Wide Average Grade A Rents $9.77 per sq ft / per month District Rental Rate Vacancy Rate per sq ft / per mth
Raffles Place / New Downtown– Premium $11.65 3.0% CBD Vacancy Rate Raffles Place / New Downtown– Grade A $10.00 8.0% 5.0% Shenton Way / Tanjong Pagar $8.00 - $9.50 6.0% Beach Road / Bugis $8.75- $9.15 2.5% Orchard Road $8.25 - $8.75 5.5% City Fringe West / Alexandra Rad $6.40 - $6.90 3.5% City Fringe East $6.40 - $6.90 4.0% City Fringe North / Novena $6.95 - $7.45 0.75% Suburban East $4.50 - $5.00 17.5% Suburban West $5.20 - $5.75 5.75% 07 Request a Summary of Available Office Space
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