A Review of the Singapore Office Market
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September 2013 Singapore | Hong Kong The Office A review of the Singapore office market Corporate Locations (S) Pte Ltd License No. L3010044A Tel +65 6320 8355 / [email protected] / www.corporatelocations.com.sg New Office Schemes 2 *All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure Asia Square Tower 1 / Tower 2 8 & 12 Marina View Features • Raised flooring • Column free space • 3m ceiling height $12.00 - 13.50 psf* • Dual power and telecom risers • 313 car parking spaces Units from 2,000 – 35,000 sq ft (G) One Raffles Place Tower 2 1 Raffles Place Features • Floor to ceiling windows • Raised flooring • Prime location • Direct link to MRT $10.50 - 11.50 psf* Units from 1,798 – 21,000 sq ft (G) Marina Bay Financial Centre Tower 3 10 Marina Boulevard Features • High specification • Column free space • Raised flooring $11.00 - 12.50 psf* • Good natural lighting • Dual power and telecom risers Units from 1,430 – 20,293 sq ft (G) Demand Demand for office space remains weak, but Reinsurance relocating here from One Raffles modest growth continues. More companies Place Tower 1. Allianz Group is already Summary of Some Larger Leasing Transactions are revisiting their expansion plans, aware committed as the anchor tenant and other that supply in the next few years may tighten new tenants include Mundipharma from before the next wave of new supply in 2016. Keppel Tower, and Fidelity Investments. Next Millennia Tower PayPal 10,000 sq ft The majority of recent tenants for premium door in Asia Square Tower 1 new tenants grade office space were in the financial here include global information company IHS Republic Plaza AR Capital 11,500 sq ft and business services sectors. However, Global relocating from 78 Shenton Way, and Marina Bay Financial Centre, T3 Louis Dreyfuss 20,000 sq ft activity has been across the board from international drinks company Edrington. Trammo Pte Ltd 20,000 sq ft large companies moving to decentralized locations, to smaller companies needing At Marina Bay Financial Centre, the direct Asia Square, Tower 1 Lloyds of London 32,500 sq ft economy space having to relocate due to rival to Asia Square, leasing has been strong IHS Global 32,500 sq ft the redevelopment of their existing building. in Tower 3 and recent new tenants include Mainstream companies continue to assess China Union Pay, Woori Investment & Edrington 7,600 sq ft upgrading now that the rental gap between Securities (both from One Raffles Place), and Asia Square, Tower 2 National Australia Bank 30,000 sq ft mid-tier and prime office space has narrowed, Louis Dreyfus (Wheelock House). Swiss Reinsurance 30,000 sq ft encouraging the flight to quality. Raffles Place has seen several tenants Mundipharma 17,000 sq ft Demand for office space continued its relocating within the same location such as 6 Shenton Way, Tower 2 Professional Investment Advisory 15,000 sq ft modest growth EDF Trading, who moved from Straits Trading Building to One Raffles Place Tower 2. AXA Tower Rickmers Ship Management 13,000 sq ft Pre-leasing activity for Asia Square Tower 2 Enerfo moved from One Raffles Place to Haw Par Centre Metso 9,200 sq ft has been hitting the headlines recently Ocean Financial Centre and Transcu also Ngee Ann City Bulgari 15,000 sq ft with National Bank of Australia planning to relocated to Ocean Financial Centre from relocate here from Suntec City, and Swiss Singapore Land Tower. Upcoming Office Developments: 2014 - 2017 3 2014 CapitaGreen Paya Lebar Square 138 Market Street Paya Lebar Size: 700,000 sq ft NLA Size: 430,000 sq ft Height: 40 storeys Height: 13 storeys (10 floors offices) Average floor plate: 20 - 25,000 sq ft Average floor plate: 43,000 sq ft Est. completion: Q4 2014 For sale - 99 years leasehold Est. completion: September 2014 2015 2016 2017 South Beach 5 Shenton Way Guoco Tower Marina One Duo SBF Centre Beach Road Tanjong Pagar Marina View Rochor Road Robinson Road Size: 280,000 sq ft (New downtown) Beach Road Size: Height: 23 storeys, Size: 850,000 sq ft Ophir Road Size: 340,000 sq ft 500,000 sq ft NLA 14 floors of office Height: 64 storeys, Size: 1,880,000 sq ft Height: 31 storeys Height: 34 storeys space Office floors up to Height: 30-storeys Size: 688,000 sq ft Average floor plate: Average floor plate: Average floor plate: level 38 (twin towers) Height: 39 storeys 11,000 sq ft 15 - 19,000 sq ft 20,000 sq ft (residential above) Average floor plate: Average floor plate: For sale - 99 years Est. completion: Est. completion: Average floor plate: 30,000 sq ft 18,000 sq ft leasehold Q1 2015 Q2 2015 25 - 29,000 sq ft Est. completion: Est. completion: Est. completion: Est. completion: Q4 2016 Q1 2017 June 2017 Q3 2016 Demand cont. Supply Argus Media moved from RB Capital to Internal Auditors (The Corporate Office).Tower Overall CBD vacancy rate is around 4.5% Novena Square and Shell will be vacating Singapore Land Tower, and Mitsubishi 2 is the newer tower and new tenants here sizeable space in UE Square when they UFJ Lease (there are 4 different companies are Professional Investment Advisory Services The only major office development scheduled both move to The Metropolis in 2014. Allianz starting with Mitsubishi UFJ) moved from (Parkview Square) and Global Blue Singapore for completion before the end of this year Group will also be coming out of several UOB Plaza to 6 Battery Road. New tenants (City House). Elsewhere, Rickmers Ship is Asia Square Tower 2 (782,280 sq ft). The floors in Centennial Tower when they relocate moving into Raffles Place include Open Management moved into AXA Tower from ABI scheme is now around 35% pre-leased but to Asia Square. Text into 6 Battery Road, Korda Mentha to Plaza and Wipro moved from Hub Synergy this would still mean that around 450,000 16 Collyer Quay (from Robinson Tower) into GB Building. sq ft will be released onto the market soon, CapitaGreen will be the most important and Orangefield intoOne Raffles Place which in turn will have a short term effect on scheme to be completed in the Financial from Robinson 112. On the edge of Raffles The Orchard Road area has seen limited vacancy rates. The current vacancy rate in District next year Place, Validus Reinsurance moved from activity because of tight supply. Haw Par Raffles Place is around 6% and Shenton Way One Finlayson Green to Samsung Hub. Centre has been one of the most active is around 2%. Tanjong Pagar has a lower CapitaGreen will be the most important Cooper Gay also moved to Samsung Hub (4 buildings and new tenants here include Jade vacancy rate and the Marina Bay area has scheme to be completed in the Financial Robinson Road) and Nikon Singapore moved E-Services Singapore, Sibelco (Maybank an approximate vacancy rate of 3%. Orchard District next year, providing some 700,000 sq from Fuji Xerox Tower to Capital Square. Tower) and Metso. Another notable relocation Road remains very tight at around 1% ft of net lettable space. Paya Lebar Square was Bulgari who moved from The Forum to vacancy with very little new supply planned (430,000 sq ft) is for sale on a strata title The Robinson Road / Tanjong Pagar location Ngee Ann City earlier this year. Beach Road for the future. The overall CBD vacancy rate is basis offering a wide range of sizes as small still proves popular despite much tighter has always offered good value for money and around 4.5%. as 500 sq ft up to 43,000 sq ft. 2015 has just supply in this area. Many companies looking Shaw Tower in particular has attracted many two medium sized schemes scheduled for for the most cost effective options were tenants on competitive budgets. New tenants Some good quality stock on the edge of the completion, namely South Beach (500,000 sq attracted to 6 Shenton Way Tower 1 and new to move here include Wego (from Bugis CBD will be released onto the market early ft NLS) and 5 Shenton Way (280,000 sq ft). The occupiers here include Encore Technology Junction), AJM Shipping (from Fuji Xerox next year as a result of a number of major next major wave of supply will come in 2016 (Robinson Tower), Achieve Career Consultants Tower), Cogent Communications and Agilysis relocations. Proctor and Gamble will be with the completion of Guoco Tower (850,000 (Int’l Factors Building) and The Institute of Singapore (from China Square). freeing up a significant amount of space in sq ft) and Marina One (1,880,000 sq ft). Raffles Place 4 Maybank Tower Chevron House 2 Battery Road • Superb sea views • Exclusive whole floors • Raised flooring • High specification 30 Raffles Place $11.00 psf* Units from 3,757 - 4,327 sq ft $8.25 psf* Republic Plaza Units from 1,500 - 8,396 sq ft 9 Raffles Place • Prime location • Landmark site • On site car parking $9.50 - $11.00 psf* Units from 3,057 - 14,824 sq ft Bank of Singapore Centre 63 Market Street • High quality space • Column free • Raised flooring • Good natural lighting $8.50 - $9.00 psf* Units from 1,610 - 22,000 sq ft Rental Guide - Summary of Target Effective Rates Raffles Place / Marina Bay Tung Centre $9.00-$11.50 GB Building Full AXA Tower $8.00 UOB Plaza 1 $10.00 Grace Global Raffles $8.00 Fuji Xerox Towers $7.50 16 Collyer Quay $8.50 UOB Plaza 2 Full Great Eastern Centre $7.50 Hub Synergy Point $5.50 55 Market Street $7.00-$7.50 Hong Leong Building $8.80 International Plaza $6.50-$7.00 6 Battery Road $11.50 International Factors Building TBC Jit Poh Building Full Asia Square Tower 1 & 2 $12.00-$13.50 Robinson Road / Shenton Way Keck Seng Tower $6.50-$7.00 Keppel Towers $6.00 Bank of China Building $8.00 PIL Building Full Mapletree Anson $8.00-$8.50 Bharat Building Full 4 Robinson Road Full PWC Building $8.00 MAS Building Full Bank of Singapore Centre $8.50-$9.00 6 Raffles Quay $8.00 Prudential Tower Full St.