April 2015

Singapore | Hong Kong

The Office

A review of the office market

All new developments have been Index particularly successful Page

Overall CBD vacancy rate is around 4.25% 02 Rental Table - Asking Rents 03 Top Prime Offices Supply of new office space over next 18 04 Financial District - Upper Mid-Range/Prime months will be limited 05 Financial District - Economy/Mid-Range

The Gateway 06 Value for Money / Edge of CBD Rentals grew by 9.5% in 2014 and are 07 Orchard Road expected to advance further in 2015 08 Decentralised / Business/Commercial

Corporate Locations (S) Pte Ltd License No. L3010044A T +65 6320 8355 / [email protected] / www.corporatelocations.com.sg Rental Guide - Summary of Asking Rates

Raffles Place / Marina Bay Edge of CBD

6 Battery Road $9.50/$15.00 Finexis Building Full 78 $7.80 Alfa Centre $7.00 20 Collyer Quay $12.00 - $14.00 GB Building $7.00 79 Anson Road $8.00 Boon Siew Building Full 55 Market Street $8.50 Grace Global Raffles Full ABI Plaza Full Central Plaza $7.50 Tower 1 $18.00 Great Eastern Centre $10.00 Amara Corporate Tower TBC Goldhill Plaza Full Asia Square Tower 2 $18.00 $9.50 Anson Centre Full Newton 200 Full Bank of Building Full Keck Seng Tower $7.00 - $7.50 Anson House $9.50 Novena Square A $9.50 Bharat Building $8.00 PIL Building $8.00 AXA Tower $9.50 Novena Square B Full Bank of Singapore Centre $10.50 PWC Building $9.50 $7.50 - $8.50 Rex House Full $9.50 Prudential Tower $10.50 Hub Synergy Point Full SLF Building $5.00 Clifford Centre $8.50 $8.50 International Plaza $6.50 - $7.50 The Metropolis Tower 1 & 2 $8.50 Income@Raffles Full Robinson 112 $7.50 Jit Poh Building $6.50 United Square $9.00 Maybank Tower Full Robinson Centre $8.50 Keppel Towers $7.00 MBFC Tower 1, 2 & 3 TBC Robinson Point Full Mapletree Anson $9.00 OCBC Centre $9.50+ Hub $10.00 MAS Building Full West / Others OCBC Centre East $9.80 SGX Centre $9.00 St. Andrew’s Centre Full $15.00 SIF Building Full Southpoint Full Alexandra Point $7.50 One Finlayson Green Full Shenton House $5.00 - $6.00 $8.00 - $8.50 Alexandra Techno Park* $4.50 $12.00 The Globe Full Tower Fifteen $7.50 Harbourfront Centre $7.20 - $7.80 Full The Octagon $6.00 - $6.50 Twenty Anson $9.00 Harbourfront Tower 1 $7.80 One Tower 1 $11.00 - $13.50 Tokio Marine Centre $8.50 Harbourfront Tower 2 $6.20 - $7.50 Tower 2 $10.50 - $13.50 Tong Eng Building Full Harbour Link TBC North Tower $15.00 City Hall / / Beach Road International Business Park (Jurong)* $4.50 OUE Bayfront $16.00 JEM $6.20 RB Capital Building $8.50 Orchard Road / Dhoby Ghaut 11 Beach Road $7.00 Keppel Bay Tower $9.00 Republic Plaza 1 $11.00 - $13.00 30 Hill Street Full Mapletree Business City* Full Republic Plaza 2 Full 50 Scotts Road Full 67 High Street Full New Tech Park* Full Royal Group Building Full 51 Cuppage Road $8.50+ Towers Full Pacific Tech Centre* $3.55 Royal One Phillip $10.00 182 Clemenceau Ave $7.50 Centennial Tower $15.50 PSA Building $7.50 - $8.00 $11.00 Albert Complex Full $15.50 PSA Vista $4.80 Straits Trading Building $10.50 Burlington Square Full Odeon Tower $9.50 Singapore Science Park I, II & III* $4.50 The Arcade $7.70 Faber House $9.50 One Raffles Link Full Sime Darby Business Centre* Full UOB Plaza 1 $13.50 Fortune Centre &5.80 $8.50 Tech Point* $3.20 UOB Plaza 2 $12.00 Forum $8.00 Peninsula Plaza $6.50 The Signature* $3.70 - $4.00 Goldbell Towers $9.50 Raffles City Tower $12.00 UE BizHub East* $4.50 Haw Par Centre $7.00 Shaw Tower $6.40 - $6.70 Westgate $6.50 - $6.90 Robinson Road / Shenton Way Haw Par Glass Tower $4.80 $13.00 International Building $8.50 Stamford Court $8.00 4 Robinson Road $8.00 Liat Towers $10.00 Suntec Towers 1-3 $9.00 - $12.00 East 6 Raffles Quay $8.50 - $9.50 Manulife Centre $8.80 Suntec Towers 4-5 $10.00 - $12.00 60 Robinson Road Full $12.00 The Adelphi $7.20 Abacus Plaza $5.50 71 Robinson Road $9.00 Orchard Building Full $8.50 AIA Tampines TBC 80 Robinson Road Full $9.20 East and West $8.50 Changi Business Park* $4.50 120 Robinson Road $8.00 Park Mall $7.80 Cisco Centre II Full 135 Cecil Street $8.00 Regency House $8.00 CPF Tampines Building $5.40 137 Telok Ayer Street $8.00 Shaw Centre $8.00 Chinatown / River Valley Road KA Centre* $3.20 146 Robinson Road $5.50 Shaw House $9.00 KA Place* Full 150 Cecil Street $6.50 Singapore Pools Building Full Central $9.80 NTUC Tampines Junction $5.80 158 Cecil Street $8.80 Sunshine Plaza $7.00 Central Mall $5.50 - $7.80 NTUC Tampines Point $5.50 AIA Tower Full Tanglin Shopping Centre $6.50 $6.00 - $6.50 Full ASO Building Full The @Orchard Full Great World City East $7.80 Singapore Post Centre $6.50 Bangkok Bank Building Full The Bencoolen $7.00 Great World City West $7.80 Tampines Concourse $5.50 CapitaGreen $16.00 - $18.00 The Heeren $12.00 King’s Centre $7.00 Tampines Grande $6.20 Capital Square $11.00 The Paragon Full Royal Merukh S.E.A. Building Full Tampines Plaza Full Capital Tower POA Thong Teck Building Full UE Square $8.00 Techlink* $3.20 Cecil Court $6.50 Tong Building $8.00 Valley Point $8.00 Technopark@Chai Chee* $3.50 China Square Central $9.50 TripleOne Somerset $9.50+ Tech View* $3.20 City House $7.80 - $8.50 VisionCrest Commercial $11.00 CPF Building $7.30 $15.00 * Light industrial space Far East Finance Building Full Wilkie Edge Full Far Eastern Bank Building $6.50 Winsland House 1 & 2 $13.00 $12.00 All rents quoted are asking rental rates and subject to change without prior notice

Contact Our Senior Team Members

Douglas Dunkerley Edmund Goh Darren Ng Ellynn Yap John Lee Director Director Senior Manager Sr. Marketing Executive Sr. Marketing Executive CEA Reg No. R030779G CEA Reg No. R030777J CEA Reg No. R022103E CEA Reg No. R050491F CEA Reg No. R016701D T +65 6391 5200 T +65 6391 5201 T +65 6391 5209 T +65 6391 5212 T +65 6391 5211 [email protected] [email protected] [email protected] [email protected] [email protected]

‘Finding Office Space For You, With You’ Disclaimer The information in this publication should be regarded as a general guide only. Whilst every 100 Beach Road, #17-07 Shaw Tower, Singapore 189702 care is taken in it preparation, no representation is made or responsibility accepted for its accuracy or completeness. The rentals mentioned are neither T +65 6320 8355 asking rentals nor rentals agreed by property owners, but only represent the writers views on estimated www.corporatelocations.com.sg rentals and is intended as reference only. Top Prime Offices 03

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

$14.00 psf* $13.00+ psf* Units from 3,100 – 29,000 sq ft Units from 4,000 – 40,000 sq ft

OUE Bayfront Collyer Quay One Raffles Quay North Tower

Top quality office tower on edge of Raffles Place Average floor size 22,000 sq ft New tenants include Cargill Group, Bordie & Cie, SK Energy and Jardine Lloyd Thompson

$15.50 - $16.00+ psf* $14.00 - $15.00 psf*

Units from 1,824 – 136,000 sq ft Units from 3,000 – 19,666 sq ft Marina Bay Financial Centre Tower 3

CapitaGreen Market Street, Raffles Place MBFC Tower 3 Marina Bvld, New Downtown

One Raffles Place Tower 2 Asia Square Towers 1 & 2

World Class Office

Amentities include 5 star hotel, leisure centre, food court & link to MRT

Average floor size 30,000 - 35,000 sq ft

$11.50 - $12.00 psf* $12.00+ psf* Units from 3,896 – 11,668 sq ft Units from 4,650 – 21,711 sq ft

One Raffles Place Tower 2 Ocean Financial Centre Raffles Place

$14.00 - $15.00+ psf* Units from 2,300 – 100,000 sq ft

Asia Square Towers 1 & 2 12 Marina View, New Downtown Ocean Financial Centre Financial District - Upper Mid-Range / Prime 04

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

$9.50 - $10.50 psf* $9.50 psf*

Units from 1,050 – 12,045 sq ft Units from 3,000 – 27,000 sq ft Bank of Singapore Centre

Suntec City Twrs 1- 4 Temasek Boulevard Bank of Singapore Centre Raffles Place

$10.80+ psf*

Units from 1,200 – 13,000 sq ft Republic Plaza 1

Republic Plaza 1 Raffles Place

$10.00+ psf* $11.00+ psf* $10.00+ psf* $10.00 psf* Units from 1,119 – 6,283 sq ft Units from 1,316 – 7,621 sq ft Units from 3,000 – 15,600 sq ft Units from 10,000 – 65,000 sq ft

OCBC Centre Chulia Street / Raffles Place UOB Plaza II Raffles Place South Beach Tower Beach Road Capital Tower Robinson Road

Demand All new developments have been particularly successful

Demand for new office space in Singapore Lloyds of London (74,000 sq ft), SK Energy On the edge of the CBD, K Line Logistics Vista has leased further space to American has been robust over the last twelve months, (20,000 sq ft), ACE Insurance (38,000 sq ft), has leased a floor atABI Plaza and Baker Eagle Tankers (from Keppel Bay Towers) with the new developments both inside and Apple taking up an estimated 35,000 sq ft. Tilly / Teo Fong Loong has leased a whole and Beiersdorf (from United Square). Canon and outside the CBD being particularly floor (15,000 sq ft) inParkview Square. Singapore and Electrolux have moved into successful. Outside the CBD, Westgate in The dust is now settling from the decanting of Outside the CBD The Metropolis in Buona Galaxis. Jurong has leased well with engineering and Equity Plaza and these tenants chose a wide infrastructure firm CPG taking some 83,000 variety of locations to move to, with many sq ft and other new tenants include Lockheed picking Shenton/Tanjong Pagar. Obayashi Summary of Recent Leasing Transactions Martin. Aperia Building in Lavender secured Corporation moved to 79 Anson Road, Audi/Volkswagon and Roche Diagnostics Hanwa Singapore moved to AXA Tower, Tenant Moving to > Size sq ft Moving from as their first major tenants earlier last year Gateway Law & Blackmagic Design moved to Lloyds of London CapitaGreen < 74,000 sq ft Asia Square Tower 1 and more recent tenants include Experian, Robinson Point, Prime Partners leased a floor ACE Insurance CapitaGreen < 38,000 sq ft Parkview Square Shimizu Corporation and BBC Worldwide. in Income@Raffles and Everest Reinsurance Twitter CapitaGreen < 22,000 sq ft moved to One Raffles Place Tower .1 Facebook South Beach < 80,000 sq ft 158 Cecil Street Inside the CBD South Beach Tower, which only secured TOP in February 2015, is now Other buildings in the financial district have TMF South Beach < 18,000 sq ft 158 Cecil Street over 80% leased with only a few low-rise floors seen healthy activity. Spencer Ogden has Sanofi Aventis South Beach < 40,000 sq ft 6 Raffles Quay remain available. New tenants to commit leased a whole floor atOne Raffles Place KCS Corporate Services South Beach < 9,000 sq ft City House here include Sanofi Aventis (40,000 sq ft), Tower 2. Itron Metering Systems leased a floor Lego Singapore South Beach < 60,000 sq ft MBFC Tower 3 Facebook (80,000 sq ft), Lego (60,000 sq ft), at 55 Market Street (from Goldbell Towers), Bain & Co South Beach < 18,000 sq ft OUE Bayfront TMF Group (16,000 sq ft), KCS Corporate Qatar Airways leased space in Samsung Services (9,000 sq ft), Bain & Co (18,000 sq Hub (from The Paragon), AvePoint Singapore Electrolux Galaxis < 30,000 sq ft Jackson Square ft), Canpotex (from 30 Hill Street) and Astra Oil moved into Ocean Financial Centre (from Canon Singapore Galaxis < 50,000 sq ft Keppel Bay Towers (from Raffles City Tower).CapitaGreen is also Centennial Tower), and Asia Environment Obayashi 79 Anson Road < 7,000 sq ft Equity Plaza over 70% committed, only a few months after Holdings moved to GB Building (from OCBC BBC Worldwide Aperia Building < 6,000 sq ft Shaw Tower receiving TOP in December 2014. A host of Centre). H&CS Holdings has purchased Prime Partners Income @ Raffles < 9,000 sq ft Equity Plaza high profile tenants have secured space in this a whole floor inSpringleaf Tower (from Central Provident Fund Novena Square < 210,000 sq ft CPF Building development and the latest MNC’s choosing Winsland House). Equinix Asia Pacific has this project include Twitter (22,000 sq ft), leased a whole floor inChina Square Central. Equinix Asia Pacific China Square Central < 12,000 sq ft Equity Plaza Financial District - Economy / Mid-Range 05

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

$7.00+ psf* $7.20 psf* $8.50 psf*

Units from 2,271 – 20,000 sq ft Units from 1,130 – 9,989 sq ft Units from 1,750 – 14,766 sq ft AXA Tower

135 Cecil Street 78 Shenton Way Tanjong Pagar AXA Tower Shenton Way

158 Cecil Street

$8.30 psf* $7.50 - $9.00 psf* $8.50 psf* Units from 1,765 – 30,000 sq ft Units from 1,593 - 40,000 sq ft Units from 3,000– 20,669 sq ft

158 Cecil Street 6 Raffles QuayShenton Way Mapletree Anson Anson Road

$7.50 psf*

Units from 1,496 - 36,630 sq ft Robinson 77

Robinson 77 Robinson Road

$8.50 psf* $8.50 psf*

Units from 3,300 – 10,215 sq ft Units from 8,000 – 19,666 sq ft 71 Robinson Road

SGX Centre 1 Shenton Way 71 Robinson Road Value for Money / Edge of CBD 06

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

$7.00 psf*

Units from 1,346 – 19,548 sq ft UE Square

UE Square Clemenceau Avenue

$8.00 psf* $8.00 psf* Units from 1,119 – 50,000 sq ft Units from 1,900 – 15,600 sq ft Parkview Square The Concourse Beach Road, Lavender Parkview Square North Bridge Rd, Bugis

$6.30 psf* $7.50 psf* $6.00 psf* $6.00 psf* Units from 1,568 – 4,833 sq ft Units from 1,000 – 11,880 sq ft Units from 1,000 – 11,840 sq ft Units from 1,000 – 18,000 sq ft

Shaw Tower Beach Road The Gateway Beach Road, Bugis Keppel Towers Hoe Chiang Road CES Centre (San Ctre) Chin Swee Road

Supply The overall CBD vacancy rate is around 4.25%

The vacancy rate for Raffles Placehas The supply of new office space over the next with the widest choice include AXA Tower, CBD some of the best opportunities can be increased to around 6.3%, but this is mainly 18 months will indeed be limited, but then Mapletree Anson, 6 Raffles Quay, 135 Cecil found in Shell House, Parkview Square, The due to the completion of CapitaGreen later in 2016 two massive new schemes, Street and 158 Cecil Street. Gateway and The Concourse. Outside the (700,000 sq ft). The vacancy rate for the New namely (1,880,000 sq ft) and CBD the Harbourfront/Alexandra district has Downtown/Marina Bay area has come down (850,000 sq ft) will form a large In the Orchard Road area 51 Cuppage the widest choice in buildings such as Keppel to around 4.5% with Asia Square Tower 2 filling part of the estimated 3 Million sq ft of new Road and Triple One Somerset have a large Bay Towers, HarbourFront Centre, Alexandra up. Vacancy rates in Shenton Way/Tanjong space expected to come on line then. In the variety of units on offer. On the edge of the Point, PSA Building and 456 Alexandra Road. Pagar are around 7.0% having been helped meantime there will be good quality space by many of the tenants from Equity Plaza available in the secondary market as a result relocating into this area, yet there have also of so many relocations to either South Beach been many large relocations from this district. or CapitaGreen. Future Developments Supply of new office space over the next In Raffles Place, CapitaGreen still has a good 18 months will indeed be limited choice of available space and One Raffles Place Towers 1 & 2 continue to offer a wide The Beach Road area has an approximate selection of sizes in a 100% prime location, at Tenant Location Size Completion Date vacancy rate of 3.5%. Both City Hall/Marina reasonable rates. OCBC Centre has a wide Centre and Orchard Road districts have choice of smaller units on offer. In the New very low vacancy rates of between 1.4% and Downtown/Marina Bay area, Asia Square Guoco Tower Tanjong Pagar 850,000 sq ft Jun 2016 1.8%, because activity/movement in this area Towers 1 & 2 still have a fair choice of space Marine One New Downtown 1,875,000 sq ft Sep 2016 is limited and South Beach has leased out and MBFC Tower III & Raffles Quay North 5 Shenton Way Shenton Way 280,000 sq ft Sep 2016 so well. The overall vacancy rate for Grade A Tower have good opportunities available. In DUO Beach Road / Bugis 570,000 sq ft Dec 2016 offices in the CBD is around 4.25%. Shenton Way / Tanjong Pagar the buildings SBF Centre Robinson Road 340,000 sq ft Jan 2017 Orchard Road 07

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

$7.50 psf* $6.80 psf*

Units from 1,270 – 21,054 sq ft Units from 10,728 sq ft

51 Cuppage Road Orchard Haw Par Centre Clemenceau Avenue

$8.50+ psf* $10.50 psf* $10.50 psf* $8.00+ psf*

Units from 1,184 – 25,468 sq ft Units from 1,351 – 22,350 sq ft Units from 1,242 – 8,784 sq ft Units from 1,000 – 14,454 sq ft

TripleOne Somerset Somerset Road Winsland House 1 Penang Road Winsland House 2 Penang Road Visioncrest Penang Road

$7.50 psf* $8.50 psf* $7.50 psf* $8.70 psf*

Units from 1,000 – 3,772 sq ft Units from 1,000 – 3,055 sq ft Units from 1,010 – 3,961 sq ft Units from 1,000 – 4,510 sq ft

Shaw Centre Orchard Road Shaw House Scotts Road Park Mall Penang Road Palais Renaissance Orchard Road

Market Forecast

Rental rates predicted to advance at Rentals grew by 9.5 % in 2014 and we expect Net absorption in 2015 is predicted to be 800,000 sq ft, but this is likely to increase to slower rate between 5% - 6% in 2015 rates to advance further in 2015, but at a over 1 Million sq ft in 2016 as a healthy take up of space in the two major new schemes more modest rate of around 5% - 6%. The net (Marina One and Guoco Tower) is expected. Rates for prime Grade A buildings now absorption in 2015 is predicted to be around average around $10.50 per sq ft. In Raffles 800,000 sq ft, but this is likely to increase to Place rates range from $9.00 per sq ft to over 1 Million sq ft in 2016 as a healthy take $13.00 per sq ft, with most quality buildings up of space in the two major new schemes commanding rates around $10.00 to $11.00 Marina One and Guoco Tower coming on line per sq ft effective. The average effective rate at this time is expected. in the New Downtown / Marina Bay area is now around $13.25 per sq ft. Most buildings Some larger users are already considering in the Shenton Way / Tanjong Pagar area their plans for 2016 with these two schemes average around $7.50 to $8.50 per sq ft. in mind, but in the meantime there is still a City Hall / area averages around reasonable choice of space in both the newer $10.00 per sq ft and Beach Road has an schemes as well as secondary space as a average rate around $7.50 per sq ft. result of so many relocations.

Rentals grew by 9.5% in 2014 Average Effective Rates by District Those tenants who are more budget Raffles Place $10 - $11.00 conscious will be drawn to some of the New Downtown / Marina Bay $13.25 excellent opportunities that offer good value for money on the edge of the CBD, and those Guoco Tower Marina One Shenton Way / Tanjong Pagar $7.50 - $8.50 needing to be in a prime location will be Tanjong Pagar Marina View (New Downtown) City Hall / Marina Centre $10.00 attracted to the high net efficiency rate of the Beach Road $7.50 newer developments. Overall the anticipation Size: 850,000 sq ft Size: 1,880,000 sq ft Orchard Road $8.00 - $9.00 of the new supply in 2016 will bode well for Height: 64 storeys Height: 30-storeys (twin towers) Fringe CBD $6.00 - $8.50 the future of the office market, as additional Office floors up to level 38 (residential above) Average floor plate: 30,000 sq ft supply will increase stability in the market Average floor plate: 25,000 - 29,000 sq ft Est. completion: Sep 2016 avoiding damaging rental surges. Est. completion: Jun 2016 Decentralised Offices 08

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

Harbourfront / Alexandra District

$6.70 - $7.50 psf* $6.50 psf* $7.20 psf* $8.50 psf* Units from 1,000 – 11,928 sq ft Units from 1,200 – 12,648 sq ft Units from 1,614 – 16,167 sq ft Units from 2,799 – 37,534 sq ft

Harbourfront Centre Maritime Square Alexandra Point Alexandra Road PSA Building Alexandra Road Keppel Bay Towers Harbourfront

Buona Vista / Island West

$4.60 psf* $7.80 psf* $5.80+ psf* $6.00+ psf* Units from 3,451 – 20,000 sq ft Units from 4,273 – 25,000 sq ft Units from 5,000 – 24,327 sq ft Units from 1,570 – 33,000 sq ft

Nucleos Buona Vista The Metropolis Tower 2 Buona Vista JEM Jurong Gateway Road Westgate Gateway Drive

Business / Commercial Space

Island East

$4.20 psf* $3.50 - $4.00 psf* $3.20 psf* $3.00 psf* Units from 15,000 – 28,000 sq ft Units from 1,539 – 27,943 sq ft Units from 5,080 – 52,743 sq ft Units from 4,544 – 12,165 sq ft

UE Biz Hub Changi Business Park The Signature Changi Business Park Technopark@Chai Chee Techpoint

Island Central Island West

$5.50 psf* $5.00 psf* $4.00 psf* $4.00 psf* Units from 5,000 – 24,108 sq ft Units from 1,161 – 25,000 sq ft Units from 3,509 – 6,566 sq ft Units from 5,274 – 22,238 sq ft

Aperia Avenue 223@Mountbatten Acer Building Creative IBP International Business Park, Jurong International Business Park, Jurong