OFFICE MARCH 2019 MARKETBEATS

$10.61 2.3% 2.6% RENT (PSF/MO) RENTAL GROWTH VACANCY RATE

ECONOMIC INDICATORS 12-Month 3Q18 4Q18 HIGHLIGHTS Forecast GDP Growth 2.4% 1.9% Office-Using Sectors Expand While Singapore’s overall economy grew at a slower pace of 1.9% y-o-y in 4Q2018, the CPI Growth 0.7% 0.5% office-using sectors expanded at a faster rate. The finance & insurance sector grew 4.1% Unemployment 2.1% 2.2% y-o-y, and the information & communications sector expanded by 6.1% y-o-y. This led to office-using employment increasing by 6,500 workers during the quarter. Source: Ministry of Trade & Industry GRADE A CBD RENT & VACANCY RATE Activity in Co-Working and Finance $12 8% $10 Dominant co-working operators plan to keep expanding to solidify their market positions. 6% $8 WeWork is in advanced negotiations to take up 100,000 sf at MYP Centre, and is also $6 4% $4 speculated to be leasing 8 floors in after the completion of its asset 2%

$2 Vacancy Vacancy Rate (%) enhancement initiative. There was activity in the financial sector, with BNI Singapore Rent (S$/sf/mo) $0 0% relocating to Prudential Tower, taking up 16,000 sf. Decentralization activity may also increase due to high CBD rents, with Bayer leasing 38,000 sf at Paya Lebar Quarter. Overall Rent Vacancy Rate (%) Source: Cushman & Wakefield Research Rental Growth to be Sustained GRADE A CBD SUPPLY PIPELINE A Cushman & Wakefield During 1Q2019, the Grade A CBD rent rose by 2.3% to S$10.61 psf/mo, surpassing the 2,000 Research Publication previous peak of S$10.43 psf/mo in 1Q2015. Rental growth will be sustained in 2019 due 1,500 to the lifting of market sentiment from the Fed pausing its rate hike cycle and the potential 1,000 DATA INTO signing of a US-China trade deal in the coming months. Co-working demand will be 500 ACTION Supply (‘000 sf) maintained as there is still room for the sector to expand further. There could also be 0 2019 2020 2021 2022 2023 future activity by Chinese insurers, who are looking to grow their presence in Singapore. Source: URA, Cushman & Wakefield Research www.cushmanwakefield.com SINGAPORE OFFICE MARKETBEAT MARCH 2019

PLANNED & UNDER GRADE A EFFECTIVE RENT Christine Li INVENTORY VACANCY CONSTRUCTION SUBMARKET (SF) RATE Senior Director, Research, Singapore (SF) S$/SF/MO US$/SF/MO EUR/SF/MO 3 Church Street #09-03 Hub Marina Bay 9,001,000 2.0% 1,260,000 S$12.63 US$9.36 €8.24 Singapore 049483 7,425,000 2.5% 635,000 S$10.87 US$8.05 €7.09 Tel: +656232 0815 [email protected] Shenton Way / Tanjong Pagar 4,313,000 3.8% 782,000 S$9.99 US$7.40 €6.52 City Hall / Marina Centre 4,262,000 1.5% 205,000 S$10.16 US$7.53 €6.63 Orchard Road 1,961,000 5.4% 352,000 S$9.42 US$6.98 €6.14 Bugis 1,132,000 2.6% 1,050,000 S$10.09 US$7.47 €6.58 SINGAPORE GRADE A CBD TOTAL 28,094,000 2.6% 4,284,000 S$10.61 US$7.86 €6.92 City Fringe^ 6,908,000 3.3% 424,000 S$6.98 US$5.17 €4.55 Suburban^ 7,052,000 8.9% 534,000 S$5.57 US$4.13 €3.63

^All-Grades US$/S$ = 1.350; €/S$ = 1.533 as at 20 March 2019 KEY LEASING TRANSACTIONS 1 Q 2 0 1 9

PROPERTY SUBMARKET TENANT SF LEASE TYPE Paya Lebar Quarter Paya Lebar Bayer 38,000 Relocation Prudential Tower Raffles Place BNI Singapore 16,000 Relocation

SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION

PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE DATA INTO Funan City Hall/Marina Centre WeWork 205,000 2019 ACTION 9 Penang Road Orchard - 352,000 2019 Woods Square Suburban - 534,000 2019 ASB Tower Shenton Way Allianz 514,000 2020 A Cushman & Wakefield Research Publication CapitaSpring Raffles Place JP Morgan 635,000 2021 Central Boulevard Towers Marina Bay - 1,260,000 2022 Cushman & Wakefield (NYSE: CWK) is a leading global real estate Guoco Midtown Bugis - 650,000 2022 services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate Shaw Tower Bugis - 400,000 2023 services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. www.cushmanwakefield.com

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