Q3 / Q4 2019

Singapore | Hong Kong The Office

A review of the office market

Building Rental Table (Islandwide) P2 Co-working space update P3 Supply – where to find space P4 Success for the new schemes in 2019 P5 Featured Development – Afro Asia i-Mark P6 Featured Development – 79 Robinson Road P7 Demand overview P8 Forecasts P8

Finding office space for you, with you

Corporate Locations (S) Pte Ltd License No. L3010044A T +65 6391 5212 / [email protected] / www.corporatelocations.com.sg $8.50 $4.60+ Office Rental Guide Robinson Centre $9.00 $8.50-$9.50 Official Asking Rates Robinson Point $8.00-$8.50 Regency House Full $9.00+ Shaw Centre $8.00 In general allow around 10% discount for SBF Centre $7.00+ Shaw House $8.50 negotiations for best effective rate SGX Centre 1 & 2 $9.50 Singapore Pools Building Full Shenton House $5.50 Sunshine Plaza $6.50 SIF Building Full Tanglin Shopping Centre TBA The Globe $7.00 The Bencoolen $5.50 / New Downtown The House of Eden $7.80 The Heeren $10.50 18 Robinson $12.00 The Octagon $5.80 Thong Teck Building $7.00+ 20 Collyer Quay $10.50-$11.50 Tokio Marine Centre Full Tong Building $9.00 6 Battery Road $14.00 Tong Eng Building $5.80 TripleOne Somerset $8.80 T1 & T2 $14.00+ UIC Building $11.00 Visioncrest Commercial $9.00 Bank of China Building Full $12.50 Bank of Singapore Centre $11.00 Wilkie Edge $9.00 Bharat Building $6.50 Tanjong Pagar Winsland House I & II $9.50 CapitaGreen $13.50 100AM $6.50 $10.50 CapitaSpring $15.00 78 $8.20 Capital Square Full 79 Anson Road $7.80 Clifford Centre $8.50-$9.00 ABI Plaza Full Chinatown / River Valley Road Grace Global Raffles $9.20 Anson Centre $4.50 Central Mall $7.00 Great Eastern Centre Full Anson House $9.00 CES Centre $5.80 $9.00 AXA Tower $8.80 $6.50 Income @ Raffles $10.00 $7.80+ Great World City $7.20 Marina One $13.00 Frasers Tower $14.00+ Kings Centre $6.80 Maybank Tower Full $14.00+ The Central $9.50+ MBFC Tower 1, 2 & 3 $13.00 International Plaza $6.00+ UE Square $8.50 MYP Centre $11.00 Jit Poh Building $5.50 Valley Point $6.50 OCBC Centre $10.00 Keppel Towers $6.50 OCBC Centre East $8.00 Keppel Towers II $6.50 OCBC Centre South Full Mapletree Anson $9.40 Edge of CBD $14.00+ MAS Building $8.50 Alfa Centre Full One Finlayson Green $8.50 Southpoint Full Aperia* $6.00+ $11.50 $8.70 Boon Siew Building $5.25 $13.00 St Andrew’s Centre $5.00 Central Plaza $7.50 Tower 1 $10.50-$11.50 Tanjong Pagar Complex $3.70 Goldhill Plaza $4.80 One Raffles Place Tower 2 $12.00-$13.00 Twenty Anson $11.00 Newton 200 Full Towers $13.00 Novena Square $8.20+ OUE Bayfront $15.00 Rex House Full PLUS $8.50-$9.50 City Hall / Marina Centre / Beach Road SLF Building $4.20 Republic Plaza 1 $10.00+ 11 Beach Road Full United Square $7.50+ Republic Plaza 2 $10.00 30 Hill Street Full Royal Group Building $9.00 51 $10.50 Royal One Phillip $9.00 Beach Centre $7.80 West / Others $10.50 Towers $9.50 Alexandra Point $7.00 The Arcade $6.50+ Centennial Tower $14.80 Alexandra Techno Park* $5.00 UOB Plaza 1 $12.00 Duo Tower $14.00 ALICE@Mediapolis* $5.70 UOB Plaza 2 $11.00 Funan Full Fragrance Empire Building $6.50 KH Kea Building $5.50 Harbourfront Centre $6.30+ $14.80 Harbourfront Tower 1 $7.20+ Robinson Road / Shenton Way Odeon Tower $7.80-$8.20 Harbourfront Tower 2 $7.20 108 Robinson Road Full OG Albert Complex $5.50 International Business Park Jurong* $4.00+ 120 Robinson Road $7.00 $7.50 JEM $6.00 137 Telok Ayer Street $7.50 Peninsula Plaza TBA Keppel Bay Tower $8.00+ 146 Robinson Road TBA Raffles City Tower $11.00 Mapletree Business City* $6.50+ 150 Cecil Street $6.00+ Shaw Tower TBA Pacific Tech Centre * $3.00+ 158 Cecil Street $7.50 $12.00 PSA Building $6.30+ 6 Raffles Quay $8.00 Stamford Court $7.00 PSA Vista $4.50 71 Robinson Road $10.50 Suntec Towers 1-5 $9.50 - $11.00 Singapore Science Parks $4.50+ 79 Robinson Road $12.50 The Adelphi $4.75+ The JTC Summit $5.10 80 Robinson Road $8.50 $7.80 UE Biz Hub West $6.50 Afro Asia i-Mark $11.00 East & West $7.50 Vision Exchange TBC AIA Tower Full Westgate $6.50 ASO Building $8.00 Bangkok Bank Building TBA Orchard Road / Dhoby Ghaut BEA Building Full 182 Clemenceau Ave TBA East Capital Tower $10.00 50 Scotts Road Full Abacus Plaza $5.50 Cecil Court $5.80 51 Cuppage Road $7.50 AIA Tampines Full China Square Central $8.50 Burlington Square TBA Changi Business Park $4.00+ City House $8.80 Faber House $8.00 CPF Tampines $5.20 Far East Finance Building $5.80 Fortune Centre $6.00 NTUC Tampines Junction $5.80 Far Eastern Bank Building Full Forum $8.00 NTUC Tampines Point Full GB Building $7.00+ Goldbell Tower $8.50 TBA Keck Seng Tower $5.80+ Haw Par Centre $7.20 Singapore Post Centre $6.80 Manulife Tower $10.00 Haw Par Glass Tower $5.10 Starhub Green* $4.60 MYP Plaza $6.50 International Building $8.00+ Tampines Concourse $5.00 OUE Downtown 1 & 2 $9.00 Liat Towers Full Tampines Grande $6.80 PIL Building Full $10.50 Tampines Plaza $5.50 Prudential Tower $9.50 Orchard Building $7.50 Viva Business Park $3.00+ Robinson 112 $6.50 $9.50

All rents quoted are asking rental rates and subject to change without prior notice * Business Park / B1 space Co-working expansion continues unabated 03

The phenomena that is flexible / co-working space There will be a mixture of co-working space, shared offices and continues to grow at breakneck speed and shows private offices. There will also be F&B outlets, retail space, gym and no sign of tailing off, although we are entering a new recreational facilities. phase of maturity and saturation point might not be Elsewhere, WeWork has secured six floors atIncome @ Prinsep in that far off. Dhoby Ghaut, while JustCo has just opened another centre in China Square Central. Earlier this year, WeWork secured 100,000 sq ft of space in MYP Centre at 9 Battery Road (fka Straits Trading Building) All the big players are still grappling for market share. JustCo has and will start operations when current tenant Rajah and Tann relocate secured a further location at 51 Bras Basah Road (fka Manulife Centre). to Marine One later in 2020. The entire building 55 Market Street has They have taken up two whole floors here, totaling over 50,000 sq ft been decanted of tenants and it is rumoured the new owner is targeting and is expected to house over 5,000 people. This facility will be like a co-working space operator to lease the majority of the building, but many of the latest larger centres which will include hot desking, product details have not yet been confirmed. showcase corner, games area and breakout space. It will also have phone booths, quiet pods and a nursing room. There is an event space WeWork currently operate from Beach Centre, Mapletree Anson, City for 180 people and multipurpose rooms for up to 50 people. House, 71 Robinson Road, ARC 380, Manulfe Tower, Suntec Tower 5 and Funan. Income @ Prinsep, MYP Centre, Singapore Science Park, Heavy weight player WeWork, has agreed to lease the entire HSBC 21 Collyer Quay (HSBC Building) and are rumoured to be the new Building at 21 Collyer Quay totaling some 220,000 sq ft which is easily anchor tenant at PSA Building along Alexandra Road after PSA move the largest such center in Singapore. This is scheduled to be functional to their new building in Pasir Panjang. They now have over 500,000 in 2021, after HSBC relocate to Marina Bay Financial Centre later in 2020. members worldwide. It seems whole buildings are not uncommon for flexible work space operators now, with Hong Kong-based operator Campfire opening a JustCo operates from Asia Square, Marina One, 20 Collyer Quay, UIC 82,000 sq ft facility at 139 Cecil Street. This will comprise a 16-storey Building, AXA Tower, China Square Central, 6 Raffles Quay, MacDonald mixed use scheme with roof terrace, sky pool and roof top bar. House, , Samsung Hub and 120 Robinson Road.

139 Cecil Street HSBC Building MYP Centre 51 Bras Basah Road 21 Collyer Quay 9 Battery Road

Summary of New Office Developments 2020-2022

Development Location Nearest MRT Est. Size sq ft Completion

79 Robinson Road Robinson Road Tanjong Pagar 518,000 Q2 2020 Afro Asia i -Mark 63 Robinson Road Tanjong Pagar 182,000 Q2 2020 CapitaSpring Raffles Place Raffles Place 635,000 Q2 2021 70 Anson Road Tanjong Pagar Tanjong Pagar 150,000 Q1 2021 IOI / Central Blvd Towers New Downtown Downtown 1,260,000 Q1 2022 Guoco Midtown Beach Road / Bugis Bugis 566,000 Q1 2022 Supply *All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure 04

The supply of new office space will be Mitsubishi UFJ move to collocate to their next wave of supply in 2022. UBS will also be contracting over the next 1½ years with just HQ Marina One East Tower later in 2020. freeing up three large floors inSuntec Tower two major schemes scheduled for completion 6 Battery Road will also have some quality 5, each approximately 30,000 sq ft. over this period. Tenants will need to consider space coming available next year when shadow space when assessing the alternative Aramco relocate to OUE Bayfront and RHT There are only two major schemes scheduled leasing options. Shadow space is space that Law Taylor Wessing give up 20,000 sq ft after for completion next year in the CBD, namely hasn’t come to market yet but will be freed up their move to Paya Lebar Quarter. Income 79 Robinson Road (514,000 sq ft) and Afro as a result of major relocations of other larger @ Raffles has four floors coming available Asia i-Mark at 63 Robinson Road (182,000 space users. when Regus return levels 20/F and 21/F sq ft) (See special feature on P6 and P7). and two other mid-rise floors are released The next wave of supply will come in 2022 Raffles Place is especially tight in terms of following the acquisition of CA Associates by with notably Central Boulevard Towers and supply and finding larger units is particularly Broadcom. Republic Plaza has good choices Guoco Midtown coming on stream. Only one challenging in this location. Only when at reasonable rates. major scheme will be completed in 2021, that CapitaSpring is completed in March 2021 being CapitaSpring and 25% of that space (635,000 sq ft) will the pressure be eased In the City Hall area EFG Bank is relocating has been preleased to JP Morgan Chase. somewhat. Some relief may be found in from EFG Bank Building next year to 79 Therefore the next 2 years will be challenging buildings like Singapore Land Tower after Robinson Road. This will free up the majority for those companies looking to upgrade to of space in their current building. The space newer buildings and these may well command released when UBS relocate their entire premium rates with such limited choice. city offices to 9 Penang Road will free up significant space inOne Raffles Quay North Currently the buildings that offer the widest The supply of new office space will Tower. A total of 11 floors, amounting to a choice of space include Odeon Towers, where massive 229,000 sq ft will be coming onto Total Oil have just released 7 floors following be contracting over the next 1½ years the market in Q1 2021 and will be one of very their move to Frasers Tower, and One Marina with just 2 major schemes scheduled few opportunities for large space users to Boulevard where Microsoft is releasing 5 floors for completion over this period. secure prime Grade A office space before the following their move, also to Frasers Tower.

$12.50* psf $11.25* psf $10.00* psf

Units from 2,700 – 50,000+ sq ft Units from 4,000 – 40,000+ sq ft Units from 2,000 – 24,000 sq ft

One Raffles Quay North Tower One Marina Boulevard Income@Raffles Raffles Quay Collyer Quay Collyer Quay

Lobby Lobby Lobby Success for the new office schemes in 2019 05

How well have the new office schemes leased out this year? The Tower 1, moving in from TripleOne Somerset. NTUC Income has answer is very well indeed. Last year Frasers Tower was the star of leased 55,000 sq ft in Tower 2. Co-working space specialists Spaces the show for obvious reasons, with such illustrious anchor tenants as (part of IWG) has secured 52,000 sq ft, which will complement other Microsoft, Total Oil and ABN Amro Bank. co-working space operated directly by the developer Lend Lease. The scheme is now 85% leased or under negotiation. This year it has been an out-of-town scheme that has made many of the headlines in the form of Paya Lebar Quarter. This project got off to Funan in City Hall has been another success story this year. The a good start last year when pre-leasing agreements were announced scheme is split into two towers with the South Tower mainly taken up by for PLQ Tower 3 with SMRT leasing 97,000 sq ft and Great Eastern Government bodies such as The Attorney General’s Office, Singapore Insurance leasing 125,000 sq ft. This year it has been Towers 1 and 2 Department of Statistics and Digital Government Office. The North Tower that have been the most active, attracting a variety of tenants covering has attracted tenants such as Adidas (from Robinson 77) and Dutch a wide spectrum of industries from law firms to pharmaceutical to platform payment firm Adyen (from 30 Hill Street) as well as WeWork. information technology. 18 Robinson is a top quality space overlooking Raffles Place but has Pharmaceutical giant Bayer South East Asia is relocating here from been slightly slower to fill out than other projects, only because the OCBC Centre East in Raffles Place to lease 31,000 sq ft in Tower 1. sizes available are more restricted between 4,000 sq ft to 8,000 sq ft Law firm RHT Law Taylor Wessing is relocating from 6 Battery Road to (i.e. either half floor or whole floor). New tenants here include Iconiq secure around 20,000 sq ft. Intellectual Property Office of Singapore Capital, CBS Interactive and Aoyama Sogo Accounting, as well as has taken up two whole floors, having relocated from 51 Bras Basah serviced office space operator Regus. Road and property portal Property Guru has leased 28,000 sq ft in

Paya Lebar Quarter — Towers 1 & 2 18 Robinson Paya Lebar Robinson Road

$8.00 per sq ft (Estimated Effective Rate) $10.75 per sq ft (Estimated Effective Rate)

Units from 3,000 – 60,000 sq ft Units from 3,300 – 8,000 sq ft

Tenants include Tenants include SMRT, NTUC Income, Great Eastern Insurance, Bayer SEA Iconiq Capital, CBS Interactive, Aoyama Sogo Accounting, Property Guru, RHT Law Taylor Wessing, Obayashi, JLL, CBRE Singapore Life, Airtrunk Singapore, Southern Ridges Capital, Intellectual Property Office of Singapore, Spaces Simcorp Singapore, KPF New Office Developments 2020 06

Attractive Rates Afro Asia i-Mark 63 Robinson Road

Estimated Effective rate

$10.00* per sq ft

Expected TOP May 2020

Development size: 182,000 sq ft

Average floor size: 12,000 sq ft

Building height: 19 storeys

Sizes: 3,000 — 36,000 sq ft

Features CC. oilet A AHU T Pantry emale F Typical office Male • Prominent corner site. floor plan • Good natural lighting. PL3 12,000 sq ft PL6 • Easy access to Raffles Place

Lift Lobby • Many amenities close by PL5 PL2 12m 11m • Flexible sizes FL1 PL1 FL2 PL4 • Competitive rates

MCCALLUM STREET Nearest MRT station Tanjong Pagar, Raffles Place 18m

Anchor tenants to be confirmed

R OBINSON ROA D New Office Developments 2020 07

Excellent Value 79 Robinson Road

Estimated Effective rate

$10.00 - $11.00* per sq ft

Expected TOP May 2020

Development size: 518,000 sq ft

Average floor size: 24,000 sq ft

Building height: 29 storeys

Sizes: 2,000 — 48,000 sq ft

Features 83m • Opposite MRT with underground link • Ground floor drop off zone • Impressive elevated Entrance lobby on 2/F 11m • Superb sea views. • Floor to ceiling windows. • Event / Function rooms. PL07 PL08 FL02 13m 21m • Excellent value. PL09 AHU PL06 Male FL01 Female 31m Mid Zone Lobby Zone Mid PL10 PL05 Nearest MRT station Tanjong Pagar 11m Anchor tenants

Allianz 50,000 sq ft Typical mid zone plan 24,139 sq ft EFG Bank 50,000 sq ft Demand 08

Whilst the technology firms and co-working space operators have been There are also some new players in the market such as e-cigarette firm the main drivers in terms of demand, other sectors have also been Juul Singapore that secured two whole floors in One Raffles Quay North active. In fact the largest office leasing deal in the history of Singapore Tower (40,000 sq ft). The Tanjong Pagar area has been busy, some was closed earlier this year with UBS leasing the entire building at 9 of the larger tenants from Keppel Towers have found new homes and Penang Road (redevelopment of Park Mall) and committed to lease Visioncrest Commercial on Orchard Road has been active. Outlined some 383,000 sq ft of office space. below is a brief summary of some of the larger recent movers.

Recent Relocations Moved / Moving to Moved from Size sq ft

First Abu Dhabi Bank Asia Square UOB Plaza 1 22,000 EFG Bank 79 Robinson Road EFG Bank Building 50,000 UBS Bank 9 Penang Road One Raffles Quay / 383,000 Yeo Leong & Peh Solicitors The Concourse MAS Building 12,600 RHT Law Taylor Wessing Paya Lebar Quarter 6 Battery Road 20,000 Juul Singapore One Raffles Quay New Set Up 40,000 Aramco OUE Bayfront 6 Battery Road 30,000 Cofco Agri AXA Tower Asia Square 14,000 GFK Singapore Visioncrest Commercial One George Street 11,000 Informa Performance Asia Visioncrest Commercial Triple One Somerset 14,500 Afton Chemical Visioncrest Commercial Triple One Somerset 11,000 Bayer SEA Paya Lebar Quarter OCBC Centre East 38,000 Aedas The Metropolis Tower Keppel Towers 20,000 Wan Hai Lines 79 Anson Road Keppel Towers 11,000 Seateam Management Prudential Tower Keppel Towers 11,000 Partner Re Suntec City Republic Plaza 10,000 ADMIS Singapore Bugis Junction Towers Shaw Towers 10,000 Adyen Funan 30 Hill Street 10,000 East Japan Railway Twenty Anson SGX Centre 2 12,000 Adidas Funan Robinson 77 40,000 Estee Lauder Duo Tower UE Square 50,000

Market Forecast

We expect rental rates to continue to firm across the board in all Established out of town locations will continue to attract more firms categories of buildings for the next two years. This is not necessarily that don’t necessarily need to be in a 100% prime district, but options because of a surge in demand, but simply due to a lack of supply. are becoming more limited. We predict that over the next 12 months Indeed demand from conventional office users is not that strong due that prime rates will advance 3%, rentals in the secondary market to global economic uncertainties, but the flexible workspace operators will increase by 6% and in the economy range will see growth of 8% have had a huge impact on supply. because it is starting from a lower base. Average Top Grade A rentals will reach around $14.00 per sq ft by Q4 2020. So rents are advancing for not the healthiest of reasons and some businesses are beginning to baulk at paying the highest rental rates for over 10 years, since the last peak in 2008. Because of this, asking rates for some premium buildings have started to soften and we anticipate We predict that over the next 12 months that prime rates will many companies will be more flexible in terms of location where better advance 3%, rentals in the secondary market will increase by 6% value for money can be found for quality space. and in the economy range will see growth of 8%.

T +65 6391 5212 www.corporatelocations.com.sg License No. L3010044A

Douglas Dunkerley Edmund Goh Darren Ng John Lee Director Director Associate Director Manager Commercial Agency Disclaimer The information in this publication should be regarded as a T +65 6391 5200 T +65 6391 5201 T +65 6391 5209 T +65 6391 5211 general guide only. Whilst every care is taken in it preparation, no representation is made or responsibility accepted for its accuracy or [email protected] [email protected] [email protected] [email protected] completeness. The rentals mentioned are neither asking rentals nor CEA Reg No. R030779G CEA Reg No. R030777J CEA Reg No. R022103E CEA Reg No. R016701D rentals agreed by property owners, but only represent the writers views on estimated rentals and is intended as reference only.