November 2014 Singapore | Hong Kong The Office A review of the Singapore office market Demand still healthy Supply tightening Rents firming Index Page 02 Super Savers: $3.00 - $5.00 psf Demand 03 Premium Office Space: $10.00 - $14.00 psf 04 Economy Range: $5.00 - $6.00 psf Rentals 05 Lower Mid-Range: $6.00 - $7.00+ psf Rental History 06 Mid-Range: $7.50 - $8.00 psf Supply / Market Forecast Centennial Tower 07 Upper Mid-Range: $8.00 - $9.00 psf Useful Contacts 08 Rental Guide - Summary of Asking Rates Senior Rentals Team Corporate Locations (S) Pte Ltd License No. L3010044A T +65 6320 8355 / [email protected] / www.corporatelocations.com.sg SUPER SAVERS: Business / Commercial Space $3.00 - $5.00 psf 02 *All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure Qualification for Business Space East up to $4.00 psf Important Note: to qualify for business space, tenants must be involved with software development, research and development, datacenter management, design functions or customer support services. For industrial space a 60:40 ruling applies where 60% of the space must be used for industrial purposes and 40% can be used for offices. If in doubt checks should be made through the URA providing detailed information of $3.50 - $3.70 psf* $4.00 psf* $3.20 psf* $3.00 psf* your specific operations and use of Units from 1,584 – 27,943 sq ft Units from 2,357 – 8,908 sq ft Units from 1,130 – 52,743 sq ft Units from 1,807 – 12,165 sq ft the premises. Non-qualified users may be required to vacate the The Signature Changi Biz Park Honeywell Bldg Changi Biz Park Technopark@Chai Chee Techpoint Ang Mo Kio Street 65 premise on immediate notice. Central up to $5.00 psf $4.70+ psf* $4.80+ psf* $5.00 psf* $3.50 psf* Units from 2,000 – 24,108 sq ft Units from 16,932 – 21,991 sq ft Units from 2,000 – 24,000 sq ft Units from 1,345 - 3,649 sq ft Aperia Kallang Avenue Hyflux Inno Ctre Bendemeer Rd 223@Mountbatten Cyberhub@Bendemeer Rd West up to $4.00 psf $4.00 psf* $3.90 psf* $4.00 psf* $4.00 psf* Units from 2,982 – 14,930 sq ft Units from 1,281 – 5,845 sq ft Units from 1,474 – 9,053 sq ft Units from 1,033 – 22,238 sq ft Alexandra Technopark The Synergy Acer Building Creative IBP Alexandra Road International Business Park, Jurong International Business Park, Jurong International Business Park, Jurong Demand The improved business sentiment and firming to relocate from GB Building, and reinsurance enough. The insurance giant Aon leased 9 space in Shell House, relocating from 2HR up of demand has led the Singapore office provider Jardine Lloyd Thompson has chosen floors inSGX Centre (90,000 sq ft). The CPF on Havelock Road. market to strengthen for six consecutive this scheme (35,000 sq ft) to consolidate Board are leasing 210,000 sq ft (the largest quarters. Many companies are bringing from One Raffles Quay and Prudential Tower. leasing deal this year) in Novena Square, Cont. on pg 3 forward their expansion plans and more are The two most recent transactions concluded Estée Lauder has taken a large amount of seeking opportunities to upgrade their office here are with law firm Jones Day, who will space, having delayed such decisions until be relocating from nearby Samsung Hub, the global economic recovery took a firmer and SK Energy, relocating from SGX Centre. hold. Singapore is again being regarded the Leasing activity in South Beach is also Summary of Recent Leasing Transactions obvious choice as a regional HQ for South increasing. Rabobank was the original tenant East Asia, now that the China market has to secure space there of around 25,000 Tenant Moving to > Size sq ft Moving from become so large that it is considered a region sq ft and we understand that international in its own right. Hence global conglomerates management consultants Bain & Co have CPF Board Novena Square > 210,000 CPF Building like General Motors are moving their regional agreed to lease some space there too. Cargill Group Capitagreen > 52,000 The Concourse headquarters to Singapore. Jardine Lloyd Thompson Capitagreen > 40,000 One Raffles Quay At the beginning of the year there was much SK Energy Capitagreen > 20,000 SGX Centre It is noticeable that demand for the new speculation how the large swathes of space Jones Day Capitagreen > 18,000 Samsung Hub schemes has been gaining momentum, coming available in the secondary market Border & Cie Capitagreen > 12,000 GB Building particularly those scheduled for completion as a result of some major relocations would Rabobank South Beach > 25,000 Robinson 77 around the end of this year. CapitaGreen affect rentals. The Singapore Stock Exchange Aon Insurance SGX Centre > 90,000 Mapletree Anson has attracted several high profile tenants. was coming out of SGX Centre, Proctor & Estée Lauder Shell House / UE Square > TBC 2HR Cargill Group was the first anchor tenant Gamble was coming out of Novena Square Vodafone Asia Square T2 > 30,000 Suntec City/Straits Trading Bldg here, leasing over 50,000 sq ft. Then Swiss and Shell was coming out of Shell House/ private bank Bordier & Cie followed, deciding UE Square. The outcome was evident soon Premium Office Space $10.00 - $14.00 psf 03 *All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure 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 $14.00 psf* $13.00 psf* Units from 1,800 – 17,530 sq ft Units from 2,500 – 18,449 sq ft MBFC Tower 3 Marina Bvld, New Downtown One Raffles Quay North Tower $13.50 psf* $12.00 psf* $10.80 psf* Units from 5,000 – 66,000 sq ft Units from 2,000 – 21,711 sq ft Units from 1,000 – 8,000 sq ft CapitaGreen 138 Market Street, Raffles Place Ocean Financial Centre Raffles Place Republic Plaza Raffles Place World Class Office Amentities include 5 star hotel, leisure centre, food court & link to MRT Average floor size 30,000 - 35,000 sq ft $10.80 - $11.50 psf* $12.50+ psf* Units from 1,345 – 11,688 sq ft Units from 1,012 – 12,809 sq ft One Raffles Place Tower 2 Centennial Tower Temasek Ave, Marina Bay $12.50 psf* $11.00+ psf* $14.00+ psf* Units from 1,894 – 6,400 sq ft Units from 4,000 – 45,000 sq ft Units from 1,239 – 60,000 sq ft Millennia Tower Temasek Ave, Marina Bay South Beach Tower Beach Road / City Hall Asia Square Towers 1 & 2 Marina View, New Downtown Demand (continued) In the new downtown area Vodafone has been limited. Zenith Media leased 13,000 sq BGC Group has moved to Ocean Financial There is much buzz in the market about the leased 30,000 sq ft in Asia Square Tower ft in Income@Raffles, MSCI/Risk Metrics Centre. Compuware has moved into One sale of Equity Plaza, with the new owners 2 and LinkedIn has leased two whole floors moved from Wheelock Place to One Raffles Finlayson Green from Suntec City and planning to sell off much of the space on a at MBFC Tower 2, in space given up by Quay North Tower. Invesco has moved from People Profilers moved here from 4 Robinson strata title basis. All tenants have been given Barclays Bank. In Raffles Place activity has 20 Collyer Quay to Republic Plaza. Road. On the fringe of Raffles Place L’Oréal notice that their leases will be terminated Singapore has leased a whole floor atOne in March 2015. Many have decided to find George Street (30,000 sq ft) and Bakri alternative premises which means over Petroleum has moved here from PSA Building. 250,000 sq ft of office space will be displaced Summary of Recent Leasing Transactions from the market, either permanently or In the Marina Bay area Suntec City still temporarily. Some tenants have already proves popular and new tenants here include found new offices, for instance Obayashi has Tenant Moving to > Size sq ft Moving from Japan Tobacco International (from Winsland leased space in 79 Anson Road. Most of the LinkedIn MBFC Tower 2 > 36,000 AXA Tower House), Acronis (from 78 Shenton Way) other tenants are looking around the Raffles Korn Ferry International Centennial Tower > 18,000 Suntec City and Heliconia Capital Management (from Place/ Robinson Road/ Tanjong Pagar areas L’Oréal Singapore One George Street > 30,000 Winsland House Atrium@Orchard). Korn Ferry has moved which will have an effect on the vacancy rate MOL Ship Management CES Centre fka San Ctre > 20,000 2 HR from Suntec City to Centennial Tower. On for these areas before long. OpenNet Technopark@ Chai Chee > 24,000 The Gateway the edge of the CBD, Aperia in Lavender has DSM Nutritional Products Mapletree Biz City > 17,000 2HR been one of the busiest new developments. The fate of Prudential Tower is also not clear Roche Diagnostics Aperia - Lavender > 40,000 Central Plaza Zenith Media Income@Raffles > 13,000 137 Telok Ayer Street New tenants here include Roche Diagnostics as this has just been sold recently as well to Aptina Haw Par Centre > 11,500 Singapore Post Ctre from Central Plaza (40,000 sq ft), Audi/ a local consortium, which may plan to sell off CSC Computer Services UE Biz Hub Changi > 28,000 Twenty Anson Volkswagon (from Great World City), Cardinal some floors and retain the rest.