October 2012

Singapore | Hong Kong The Office

A review of the office market

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Club Med (Singapore HQ) (Valley Point) E-Sun Bank () Asahi Group Holdings (The Central) Trafigura () Bang & Olufsen Reg HQ (AIA Tower) Reyl Singapore (MBFC Tower 2) Germanischer Lloyd (Haw Par Centre) BBAM (Babcock & Brown) (UOB Plaza II) SAC Capital (AIA Tower) Nissho Odyssey (Valley Point) Jasper Drilling (Harbourfront Tower 1) www.corporatelocations.com.sg Ensco Asia Pacific (Suntec City T 5) Air Liquide (Republic Plaza) Also interested in Hong Kong office space? The information in this publication should be regarded as a general guide only. Whilst every effort has been made to take care in its preparation, no representation www.corporatelocations.com.hk is made or responsibility accepted for its accuracy.

Corporate Locations (S) Pte Ltd License No. L3010044A Tel 6320 8355 / [email protected] / www.corporatelocations.com.sg

Supply / Demand

Raffles Place, the long standing established core of the prime office Ferris Recruitment and ATC Trustees Singapore (from UOB Plaza 1) as market, has been seeing mixed fortunes over the last 9 months with the new tenants. Maybank Tower has leased floors to Valpes Investment and critical mass of supply shifting towards the new Downtown area. Activity Recheer Resources. New tenants to include Graydon has been patchy with some buildings leasing well and others less so. Capital, Swisslinx and Bentley Systems.

6 Battery Road has been particularly active and Capitaland have done an On the supply side Tung Centre has ample space available with good sea excellent job of retaining their tenants whilst undertaking major renovation views although the rates are still reasonably high. There is a good choice on a floor by floor basis, by moving them within the building onto floors of units available in Chevron House and Tower 1, and that were renovated earlier. New tenants to the building include Mayer 6 Battery Road is still a popular choice despite the rates and the ongoing Brown JSM, RHT Law Taylor Wessing (2 whole floors) and Blue Crest refurbishment. is expected to be significantly affected Capital Management. Other tenants to relocate here recently include Open with more large tenants relocating to other buildings later this year. Text from Stamford Court and Fairfield Chemicals from Tung Centre.

In Bank of Singapore Centre new tenants here include Banque Transatlantique, UFA Sports Asia and SNI Holdings. Another building Asking Rates per sq ft – Raffles Place / New Downtown that has been active is 16 where CA Technologies have $10.50 $10.00 leased several floors, Western Bulk has leased a floor here moving from 55 Market Street $8.00 One Raffles Pl Twr 1 $11.50 6 Battery Road and other new occupiers include JA Mitsui Leasing and 6 Battery Road $11-$12.00 One Raffles Pl Twr 2 $12-$12.50 Universal Wellbeing. One Raffles Place Tower 1 has attracted A2A, Asia Square Tower 1 $12-$14.00 $10.80 Hanghuo Energy, and Cava Shipping as new tenants. Bank of China Building Full OUE Bayfront $13.00 Bharat Building Full RB Capital Building $6.80 Other established buildings such as has leased a Bank of Singapore Ctr $9.75-$9.90 Republic Plaza 1 $12-$13.00 whole floor to Forest Pine Group, and other units to Valartis Bank and law Chevron House $10.50 Republic Plaza 2 $10.00 firm Nabarro.UOB Plaza 1 has leased space to Agritrade International, Clifford Centre $8.50 Royal Group Building Full Tanoto Foundation and MRI Trading whilst UOB Plaza 2 has secured Equity Plaza $9.00 Royal One Phillip (One Philip St) Full BBAM Singapore (from 55 Market Street) and Singapore Petrochemical & Maybank Tower Full Singapore Land Tower $11.50 Energy as new tenants. MBFC Towers 1-3 $11-$13.00 Straits Trading Building $11.00 OCBC Centre $10.50 The Arcade $7.50 Some of the smaller buildings have been active OCBC Centre East $9.80 Tung Centre $13.00 Ocean Financial Centre $13.00 UOB Plaza 1 $11.00 Some of the smaller buildings have been active as well such as 55 One Finlayson Green $8.50 UOB Plaza 2 $10.50 Market Street, which has secured Chancery Law Corporation, Judd One George Street $11.00

$11.50 psf* $8.50 psf* Tung Centre Chevron House Collyer Quay 30 Raffles Place Units from 1,500 to 30,000 sq ft Units from 1,000 – 18,000 sq ft

$11.50 psf* $10.50 psf* 6 Battery Road One Raffles Place Tower 1 Battery Road Raffles Place Units from 1,000 sq ft to 11,000 sq ft Units from 1,700 to 9,000 sq ft *all rates are a guide only on estimated effective rates Edge of Raffles Place

Supply / Demand

Whilst this area has generally been much more competitive in terms of In China Square Central space has been leased by WT Partnership rental than prime Raffles Place it is a little surprising to see that it is this (relocated from 2HR) and Grasshopper. In Prudential Tower new tenants location that has been hardest hit with a significant number of major include Kumon (relocating from One George Street), JM Financial, Berry tenants relocating to the major new developments. Schemes like One Maritime and Lianfeng International. George Street, , China Square Central and Prudential Tower all lost their major anchor tenants to these new projects and have When AIA gave up a large swathe of space in AIA Tower the landlord taken some while to recover. was particularly pro-active in finding replacement tenants offering very competitive packages and new tenants here include Bang & There is now a wide choice of quality space available in these buildings Olufsen (regional HQ), Pine Bridge Investment and Absolute Asia Asset and is slowly being taken up. For example in Samsung Hub new tenants Management (relocating from The Central). Elsewhere on the fringe of here include Sage Publishing, Acuatico, Shagang International, Legal Raffles Place,PWC Building has attracted Century Tokyo Leasing as Standard and Ellis Munro Asset Management. a new tenant moving from The Corporate Office and Faithfull & Gould relocating from Cecil Court.

$8.50 psf* $8.50 psf* Samsung Hub Prudential Tower 3 Church Street 30 Cecil Street Units from 1,200 – 26,000 sq ft Units from 1,000 – 22,000 sq ft

$8.00 psf* $10-$10.50 psf* China Square Central One George Street 18 Cross Street George Street Units from 1,200 – 50,000 sq ft Units from 2,633 – 24,000 sq ft

$9.00 psf* $6.85 psf* Capital Square AIA Tower 23 Church Street 1 Robinson Road Units from 2,659 – 30,000 sq ft Units from 1,900 sq ft – 8,000 sq ft *all rates are a guide only on estimated effective rates Robinson Road /

Supply / Demand

Leasing activity in this location has been sporadic with the newer has secured several new tenants such as Nuvest buildings and those offering the best value attracting the most Capital, Canaccord Genuity and Briq. It also managed to attract tenants. DBS Tower II in particular has been busy filling in the Mizuho Corporate Bank at the beginning of the year. voids left by Deutsche Bank and DBS Bank and new tenants here include Royal Cheme International, KFW Ipex Bank, Core Robinson Centre has leased space to Walt Disney and Patni. Consulting Solutions, KMMT, Malacca Sourcing and Longitude 120 Robinson Road (previously known as Parakou Building) Engineering. Grayling Asia has also moved here relocating from has leased 2 floors with Patsystems and MAM each taking a floor. Shell House and IIFL have just moved in from Tung Centre. Sapient Singapore leased space in 158 Cecil Street.

Asking Rates per sq ft – Edge of Raffles Place / Robinson Road / Shenton Way 4 Robinson Road Full Finexis Building $6.50 6 Raffles Quay $8.50 GB Building $7.80 60 Robinson Road $8.50 Grace Global Raffles $8.50 71 Robinson Road $8.50 Great Eastern Centre $9.50 80 Robinson Road $8.20 $9.20 120 Robinson Road $7.00 International Factors Building TBC 135 Cecil Street $8.00 Keck Seng Tower $7.50 137 $6.50 PIL Building Full 146 Robinson Road $5.50 PWC Building $8.50 150 Cecil Street $6.50 Prudential Tower $9.50 158 Cecil Street $8.00 Robinson 77 $8.50 AIA Tower $8.00 Robinson 112 $7.50 ASO Building Full Robinson Centre $9.00 Bangkok Bank Building $6.00 Robinson Point $8.00 Capital Square $10.50 Robinson Towers TBC Capital Tower $9.80 Samsung Hub $9.00-$9.50 Cecil Court $4.50 SGX Centre $7.50-$8.50 China Square Central $8.50 SIF Building Full City House $8.00 Shenton House $4.00 $6.00 psf* CPF Building $7.20 The Corporate Office (Oxley Tower) $7.00 DBS Tower 1 $7.50-$8.00 The Globe $6.20 DBS Tower 1 DBS Tower 2 $7.50-$8.00 The Octagon $5.60 6 Shenton Way Far East Finance Building Full Tokio Marine Centre Full Units from 3,500 – 30,000 sq ft Far Eastern Bank Building $6.50 Tong Eng Building TBC

$7.00 psf* $7.30 psf* 158 Cecil Street Robinson 77 Cecil Street Robinson Road Units from 3,700 – 9,000 sq ft Units from 3,552 – 11,755 sq ft

$6.80 psf* $8.00 psf* DBS Tower 2 71 Robinson Road 6 Shenton Way Robinson Road Units from 2,500 – 16,324 sq ft Units from 3,563 – 20,000 sq ft *all rates are a guide only on estimated effective rates

Supply / Demand

In this location AXA Tower has seen the most movement with World Trade Group leased space in Anson House and Simatech several tenants expanding within the building such as Clarkson moved from Southpoint to 79 Anson Road. Shipping. Other notable new entries include LinkedIn, Poten Partners who relocated across the road from International Plaza, Supply in this sub-market is generally more restricted with many Pacific Resources and V Wealth Capital. Cardinal Health leased buildings enjoying high occupancy rates. The best quality and a whole at Fuji Xerox Tower relocating from Keppel Tower and widest range of choices can still be found in Mapletree Anson, Libra leased 8,000 sq ft in MAS Building. 78 Shenton Way has and AXA Tower. attracted Acronis Asia and Union Marine Management Services.

Asking Rates per sq ft 260 Tanjong Pagar Rd TBC 78 Shenton Way $7.50 79 Anson Road $7.50 ABI Plaza Full Amara Corporate Tower TBC Anson Centre TBC Anson House $8.50 AXA Tower $9.00 $8.00 Hub Synergy Point $6.00 International Plaza $6.50 Jit Poh Building $6.20 Keppel Towers $7.00 $8.50 psf* $8.00 psf* $8.00 psf* Mapletree Anson $9.00 Mapletree Anson AXA Tower Springleaf Tower MAS Building Full 60 Anson Road 8 Shenton Way 3 Anson Road St. Andrew’s Centre Full Units from 2,000 - 12,000 sq ft Units from 1,600 – 28,000 sq ft Units from 1,500 - 18,000 sq ft Southpoint TBC Springleaf Tower $8.50 Tower Fifteen $7.50 *all rates are a guide only on estimated effective rates Twenty Anson $8.50

Orchard

Asking Rates per sq ft

Supply / Demand 50 Scotts Road $9.00 Shaw House $9.50 Albert Complex $6.00 Sunshine Plaza $6.00 has always been an office location that has Burlington Square $7.80 Shopping Ctr $7.00 enjoyed relatively high occupancy rates and hence rates have Faber House $8.50 The Atrium@Orchard Full been strong for a long time in this district. Activity has been Fortune Centre $5.00 The Bencoolen $7.00 limited because of the lack of supply. Per Aquum leased a whole Forum $8.00 The Heeren Full floor inThe Forum. New tenants to Shaw House include Marriott Goldbell Towers $8.00 The Paragon Full International and Orchard Capital Partners. Haw Par Centre $7.00 Thong Sia Building Full Haw Par Glass Tower Full Thong Teck Building TBC Malvolia have moved into Ngee Ann City and new tenants to International Building $8.50 Tong Building TBC TripleOne Somerset include Casio Singapore and Styrolution Liat Towers TBC TripleOne Somerset $9.50 South East Asia. Further down Orchard Road CKE/Carl’s Junior Manulife Centre $7.80 VisionCrest Commercial $10.00 and Agape moved into Winsland House II and Germanisher Ngee Ann City $11.00 Wheelock Place $13.00 Lloyd leased a whole floor (20,000 sq ft) inHaw Par Centre Orchard Building $8.50 Wilkie Edge $8.50 relocating from Shell House. Palais Renaissance $9.80 Winsland House 1 $11.80 Park Mall $7.80 Winsland House 2 $11.80 Regency House Full Wisma Atria $11.00 Shaw Centre $8.00

$8.50 psf* $10.00 psf* $12.50 psf* $6.50 psf* TripleOne Somerset Ngee Ann City Tower A Wheelock Place Haw Par Centre 111 Somerset Road 391 Orchard Road 501 Orchard Road Clemenceau Avenue Units from 2,500 – 28,000 sq ft Units from 1,583 – 15,500 sq ft Units from 2,700 – 20,000 sq ft Units from 6,000 – 20,000 sq ft City Hall / Beach Road / Marina Centre

Supply / Demand Asking Rates per sq ft 11 Beach Road Full $9.50 Supply in this location is more restricted than one would expect 30 Hill Street $8.00 Peninsula Plaza TBC and in particular boasts a relatively high occupancy 67 High Street Full Raffles City Tower $10.00 rate with just the smaller units available - hence the landlords here 700 Beach TBC Shaw Tower $6.00 are more bullish on their rates. has a significant Bugis Junction Towers Full Stamford Court $7.50 amount of space coming available as a result of Citibank relocating Centennial Tower $12.00 Suntec Tower 1-3 $8.80-$10 and over 8 whole floors (circa 17,000 sq ft each) will be released Keypoint $5.50-$6.50 Suntec Tower 4-5 $10.00 over the next 12 months. By contrast Centennial Tower and even Millenia Tower $12.00 The Adelphi TBC have only a limited number of units available. Odeon Towers $8.00 $8.00 One Raffles Link Full The Gateway East/West $7.50 Ample space coming available in Millenia Tower

This area has seen reasonable activity since the beginning of the year. Parkview Square has secured a number of large tenants including International Baccalaurette (whole floor – 15,000 sq ft) relocating from Tower 15 in Tanjong Pagar, and BMC Software has taken a large unit relocating from IOI Plaza on Middle Road. Other new tenants to recently move to this building include The Embassy of Oman, Ingenico International, Rich Tree Capital and Fiat/Chrysler. Another tenant to relocate from IOI Plaza was law firm Viering, Jentschura & Partner who upgraded and moved to Bugis Junction.

Centennial Tower has found some high calibre tenants and new occupiers here include Rolls Royce, Maxwell Chambers, Rongsheng Offshore (a whole floor) and DHR International. Millenia Tower, has also been one of the more active buildings in this area. New tenants here include Qatar National Bank who $8.50 - $9.50 psf* $7.00 psf* moved next door from Centennial Tower, as well as Xstrata Coal Suntec City Tower 1-5 The Gateway Sales, Panduit Singapore, Cape International, Hoya Optics, 5-9 Temasek Boulevard 150 Beach Road Origeo and Western Pacific Resources. Singapore Technologies Units from 1,200 – 7,782 sq ft Units from 1,231 – 5,537 sq ft Telemedia has just leased 12,000 sq ft here and will be relocating from 51 Cuppage Road.

Suntec City has seen significant activity

Suntec City always sees plenty of movement for a variety of reasons and new tenants to Suntec City Tower 1 include The Malaysian High Commission, Asia Soho and Singapore Julong International. Tower 2 leased a whole floor to Indika Energy and other new tenants include Sky China and Palo Alto Networks. Tower 3 probably saw the most leasing activity and secured Visy & Pratt, SK Hynix, Gold Knight Capital, Coopervision, Clear Channel, ECS and G&C as new tenants. Aussino also purchased its own unit here.

Elsewhere in the area The Gateway was relatively quiet, but new tenants here include Hutchison Ports, Springer Science and Air $5.50 psf* $11.00 psf* India. The Concourse has seen several new tenants arrive this Shaw Tower Millenia Tower year including The Discovery Group, Hevilift Group, AP Bullion, 100 Beach Road 1 Marina Avenue Constellum and Hotels Connection. Units from 1,181 – 4,729 sq ft Units from 4,500 – 36,000 sq ft

Edge of CBD

Supply / Demand Asking Rates psf – Edge of CBD / Chinatown / River Valley Rd 2HR (Havelock Road) $7.50 Newton 200 Full The supply situation on the edge of the CBD is tighter than Alfa Centre TBC Novena Square $9.00 expected. There have been some major relocations from Shell Boon Siew Building Full Rex House Full House include Germanischer Lloyd moving to Haw Par Centre Central $10.00 Royal Merukh SEA Bldg Full and BG Asia Pacific moving to Asia Square, but the owners have Central Mall $7.50 San Centre $4.50 already attracted new tenants such as Grass Valley Singapore, Central Plaza $7.00 Shell House $7.50 Marguard & Bahls and Deugro Singapore. Valley Point has been Chinatown Point $6.00 SLF Building $4.50 especially proactive in seeking new tenants since losing their Goldhill Plaza Full United Square $8.50 huge anchor tenant Manulife, offering very competitive packages. Great World City $7.20 Valley Point $6.50 New tenants here include Odyssey Shipping (whole floor), Black King’s Centre $6.80 & Veatch, Ivory Capital, Rysho Techno and Amkor Technology. The most recent major tenant to lease a whole floor here is Club Mediterranean - a Corporate Locations client. *all rates are a guide only on estimated effective rates Edge of CBD cont.

$5.75 psf* $6.50- $7.00 psf* $7.50 psf* $6.00 psf* Valley Point Shell House United Square King’s Centre 491B River Valley Road 83 Clemenceau Avenue 101 Thomson Road 390 Havelock Road Units from 1,539 – 5,877 sq ft Units from 1,141 – 9,500 sq ft Units from 1,894 – 9,655 sq ft Units from 1,216 – 11,000 sq ft

Elsewhere Great World City often attracts a wide range of In the Novena area, Goldhill Plaza secured Univar Singapore and tenants and new occupiers include Verita Oil who relocated here Vam Far East as tenants, and United Square attracted Synthes from Central Mall, as well as Ascend Capital, Global Orion, DCG Singapore, Confidence Commodities and a sister company of Capital, Lambert and Pacific Carriers. SDV moved from Fortune Oakwood as new occupiers. Centre on Middle Road to lease large space in Central Mall.

Decentralised Office Locations

Supply / Demand

Demand is still healthy for quality office buildings located outside the CBD, provided they have good public transport facilities. Hence Harbourfront has been a popular choice and new tenants here include GE Healthcare Technologies (30,000 sq ft) and Donnelly Simpson Cleary & Oehlers (moved from Raffles Place). Nearby PSA Building has attracted Novartis Asia, Opus Offshore, GMR Energy and IHC as new occupiers.

Moving East, Singapore Post Centre has leased space to Maybaru Shipping (relocating from AXA Tower/Shenton Way) as well as TUV PSB. Further East in , Crown Systems and Asia Petroleum moved into Tampines Concourse, Daikin Asia, Swisslog, Aldwych International and Kuroda all moved into Tampines Grande and Twin Global and Lincoln Lubrication Systems moved into Abacus Plaza. $6.70-$7.50 psf* $4.20-$4.50 psf* Harbourfront Centre UE Biz Hub 1 Maritime Square 6-8 Business Park Units from 1,000 – 20,000 sq ft Units from 2,222 – 30,000 sq ft Asking Rates per sq ft West / Others East

Alexandra Point $7.00 Abacus Plaza Full Alexandra Techno Park* $4.50 AIA Tampines TBC Harbourfront Ctre $7-$8.00 Changi Business Park* $4.20 Harbourfront Tower 1 $8.50 Cisco Centre II Full Harbourfront Tower 2 $8.00 CPF Tampines Building $5.30 Harbour Link TBC KA Centre* $3.30 Int’l Biz Park ()* $4.00 KA Place* $3.30 Keppel Bay Tower $9.00 NTUC Tampines Junction $5.50 Mapletree Business City* $7.00 NTUC Tampines Point $5.50 New Tech Park* $4.20 Parkway Parade TBC NOL Building TBC S’pore Post Centre $6.50 Pacific Tech Centre* $3.55 Tampines Concourse Full PSA Building $8.00 Tampines Grande $5.50 PSA Vista $4.50 Tampines Plaza $5.50 $3.90 psf* $5.50 psf* S’pore Science Park* $4.20-$5 Techlink* $3.20 The Synergy Solaris Sime Darby Biz Centre* Full Technopark@ $3.30 2 International Business Park, Jurong 1 Fusionopolis Walk, Tech Point* $3.20 Tech View* $3.30 Units from 3,746 – 17,233 sq ft Units from 4,000 – 20,000 sq ft The Comtech* TBC

* Light industrial space *all rates are a guide only on estimated effective rates P

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Am S 4 Singapore Most of the new developments in the financial district have leased t River Dr Telok Ayer ade lan One Raffles Place Esp out particularly well over the last 12 months, with both Ocean Tower 2 Financial Centre and OUE Bayfront nearly full. Only two of the t Fullerton y S B mo A Raffles Place a t Hotel t e r lowest floors remain available for lease in the former and just a St y yer A R Telok d handful of units with a Raffles Place view remain in OUE Bayfront. t ley S Rd Stan n rto lle Fu 1 There is still ample choice of space in Marina Bay Financial d son R Robin Ocean Centre Tower 3 as this is the most recent scheme to be B

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o Financial n uay Q T les completed, and a variety of floors in mid and high-rise zones can M a Raff Centre c t C St 2 a

l l u m Link be selected. The same is true with Asia Square Tower 1 because l el S Maxw t One Raffles OUE Quay Bayfront of the sheer size of the scheme and there is abundant space available, but most of the high-rise floors have been leased out. M

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Tower 2 B l The leasing activity at One Raffles Place Tower 2 perhaps got off Tower 1 e o v u a l e r v d a to a slower start than expected partly because of the competition r d from the other big 3 schemes, but the quality of space is first Downtown T1 class, the location is in the heart of Raffles Place, and with smaller T2 Marina Bay floor plates of around 11,000 sq ft it is not necessarily targeting Financial Centre Marina Bay the largest space users. We expect this development to attract 3 Sands significantly more interest over the next half year. Tower 3

1. Ocean Financial Centre

This 43-storey office scheme was Ocean Financial Centre has leased out completed in March last year, provides a exceptionally well total of 850,000 sq ft of net useable space and has been nearly fully leased out. Only The tower occupies the most prime site of a couple of low-rise floors remain available all the new developments and has leased for lease (each 20,000 sq ft) and the out exceptionally well. The original anchor subdivision of the space can be flexible. tenants were Bank Paribas, ANZ Bank and Drew Napier.

The most recent tenants to move here include Trafigura (circa 50,000 sq ft), PDS Commodities, Gazprom, Squire Sanders, Anglo American Tobacco, Hanergy Global and Neuberger Berman.

$12.00+ psf*

10 Collyer Quay Units from 4,200 sq ft – 20,000 sq ft

2. OUE Bayfront

A low-rise 18-storey office development Remaining units available at which was completed in June 2011 and competitive rates provides a total floor area of approximately 500,000 sq ft. The large floor plates range The most recent tenants to move in this from 26-30,000 sq ft. The original anchor year include Santander, Oanda Pacific, tenants were Bank of America Merrill Lynch, Presidio Holdings, Muji Global Sourcing Allen & Overy and Skandilda Banken. and Roland Berger.

There are now no whole floors available and most of the sea/bay facing space has been leased out, hence the rates for the remaining units (facing Raffles Place) will be more competitive.

$11.00+ psf*

50 Collyer Quay Units from 3,000 sq ft – 12,000 sq ft *all rates are a guide only on estimated effective rates 3. Marina Bay Financial Centre Tower 3

This is another world class project and floors (levels 7-50) with an average floor competes directly with Asia Square. This plate of approximately 25,000 sq ft. 50-storey office scheme is the newest significant office development to be The first major anchor tenant was DBS completed having received TOP only Bank, leasing some 700,000 sq ft. Other earlier this year. It provides a total of 1.25 tenants to commit early were Clifford million sq ft of office space spread over 43 Chance, McGraw-Hill, Wong Partnership and Ashurst LLP, all of whom have just moved in or are about to move in.

Plenty of good choices in mid-rise floors

More recent tenants include Clifford Capital, Regus, Berge Bulk (moving from Republic Plaza) Clyde & Co (from Springleaf Tower) and Mead Johnson. The scheme is now over 70% leased out but there are plenty of good choices in the mid-rise floors. $13.00+ psf*

10 Marina Boulevard Units from 4,000 sq ft upwards

4. One Raffles Place Tower 2

This 38-storey office scheme was specifications with raised flooring, and completed earlier this year and provides floor to ceiling windows allowing for a total net useable floor space of excellent natural lighting. approximately 350,000 sq ft with an average floor plate size of around 11,000 Leasing activity beginning to gather sq ft. It occupies a 100% prime site in momentum Raffles Place with a direct link to the MRT station. The project boasts high quality There is still a wide choice of floors and sizes available, and the leasing activity is beginning to gather momentum. Recent tenants to move in this year include Akamei, Markit, LDH Energy and Rock Capital, most of whom are new set ups in Singapore.

Other companies that have relocated to this scheme include Lockton Group (from City House), Michael Page International $11.00 - $12.00 psf* and Mubadala Petroleum (both from UOB Plaza II), and ADC International. 1 Raffles Place Units from 3,600 – 20,000 sq ft

5. Asia Square Tower 1

Completed in June last year this is a truly Original anchor tenants were Citibank, ‘world class’ office development boasting Google, Marsh & McLennan and Lloyds the highest specification and providing of London. They have since been joined over 1.25 million sq ft of space. The by a number of well-known banks such office tower has 38 floors (6-43/F) with an as Sarasin Bank, E-Sun Bank, and Royal average floor plate of 32,500-35,000 sq ft Bank of Canada. – sub-divisible down to around 4,000 sq ft. There is parking for 313 vehicles. Ample space available with landlord offering good incentives

The most recent tenants to move in this year include Sinochem International, XL Reinsurance, BG Asia Pacific (British Gas) and GDF Suez Trading. Being such a large scheme there is still ample space available and the rates are very competitive for such good quality space.

$12.00 - $13.00 psf*

12 Marina View Units from 3,000 – 34,000 sq ft *all rates are a guide only on estimated effective rates OVERVIEW Grade A rents range from $10.00 - $13.00 per sq ft

The Singapore office market has evolved are always the driving force of any office of relocations. The Robinson Road / Shenton so much in the last 15 years that every facet market, we are seeing new demand from Way area offers some of the best value for of a mature market is now prevalent – from some occupiers in other industries such as money options ranging from $6.50 to $8.00 world class schemes like Asia Square, Ocean insurance, professional and legal services, per sq ft. The Tanjong Pagar area is enjoying Financial Centre and Marina Bay Financial consumer products and commodities. relatively high occupancy so rates are firm in Centre, to some of the oldest office buildings in this district. secondary locations which still have a market Rates for prime Grade A buildings in Raffles for economy tenants. This means that nearly Place still range from $9.50 - $11.50 per sq ft. The same is true for Orchard Road and the City every type of size and budget requirement The new Downtown area commands slightly Hall/ Suntec City area where low vacancy levels can be catered for in or around the Central higher rates – between $12.00 and $13.00 per have consolidated the rates to between $8.50 Business District. sq ft (effective), but the longer rent free periods and $10.00 per sq ft in both these submarkets. on offer make these options more attractive. The fringe of the CBD sees rates averaging Despite the slowdown in demand for office The fringe of Raffles Place will see a significant around $5.50 - $6.50 per sq ft, but there are space from financial institutions, which amount of space coming available because very few options to secure space below $5.50.

A History of Singapore Office Rental Rates

4,000

3,750 Forecast 3,500 $26 Global Financial Crisis 3,250 $24

3,000 $22

2,750 $20

2,500 $18

Asian Financial STI Index 2,250 $16 Crisis Dot Com Crash

2,000 $14 First Gulf War

STI Index 1,750 $12

1,500 $10 Gross Rentals PSF

1,250 $8

1,000 $6

750 $4

500 $2

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Average Top Prime Grade A Office Rentals in Singapore Per sq ft per month

FORECAST Rates have not fallen as much as expected

Demand for office space is expected to remain buildings as a result of relocations as well as a market to soften further for the next 6 months, moderate for the medium term because of significant amount of shadow space (currently but at a slower pace than the previous nine the effect of the Eurozone crisis which is also in the region of 440,000 sq ft) looking for month of this year – maybe around 6-7% which causing a regional slowdown. This has stifled subtenants or assignees. Supply may increase would mean an overall drop of around 15% any growth in the financial sector which has further if Capitaland confirm a contemplated for the full year. We expect that rates in the always been a key supporter for the office move of all or some of their divisions to their own other submarkets such as City Hall / Suntec market, but Singapore remains a popular building at Westgate Tower. They are currently City, Tanjong Pagar and Orchard Road to firm choice for new enterprises in the Asia Pacific using office space in Capital Tower, Robinson at current rates because of limited supply and region as well as a location that is still far more Point, AXA Tower and Wilkie Edge. should remain stable for the foreseeable future. cost effective for further expansion compared to other regional centers such as Hong Kong. Fall in rates to slow down but overall drop in This will mean the rate gap between the prime 2012 will be around 15% locations and other submarkets will narrow Despite the fact there are very few other office slightly. There will still be ample choice of schemes scheduled for completion until Q3 2013 Current market rentals are still relatively firm/ space in the high-end market, but tenants (Asia Square Tower 2 - 784,000 sq ft), there are healthy and haven’t dropped as much as some may need to calculate the exact space concerns amongst some there still might be an had expected. With the backdrop of ample requirements accurately to select the most oversupply situation. There will be a substantial supply and modest demand we expect rates efficient size of unit and counterbalance any amount of space being freed up in established in the Raffles Place / New Downtown micro- budget constraints.

Corporate Locations (S) Pte Ltd License No. L3010044A Tel 6320 8355 / [email protected] / www.corporatelocations.com.sg