CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield

Wong Xian Yang, head of study, Singapore, at Cushman & Wakefield, forecasts continued recuperation for the decentralised workplace market, offered business decentralisation activities, spillover demand from the CBD, and restricted brand-new Grade-A decentralised workplace supply.

Rents for CBD Grade-An offices have actually climbed by 2.1% in 1Q2022, higher than the 1.7% growth in the previous quarter, according to a record by Cushman & Wakefield on April 6. This comes as openings prices for CBD Grade-An offices tightened up to 4.6% from 4.9% in the last quarter.

Nevertheless, the continuous economic unpredictabilities might potentially slow down the surge of rate of interest, claims Mark Lampard, head of commercial leasing, Singapore, at Cushman & Wakefield. The resuming of Singapore’s economic situation will also boost inhabitants’ assurance to take up more office, he includes.

Generally, Cushman & Wakefield stays upbeat on the Singapore office market overview, despite “raising drawback risks”. While it does not expect the Ukraine war to have a straight impact on the Singapore workplace market, inflationary pressures are anticipated to continue to be raised because of greater power prices and supply-chain interruptions exacerbated by lockdowns in China, which is a vital business companion for Singapore.

Rents in decentralised workplace markets also continued to show improvement. Workplace rents for all grades in the city edge and also country sections grew by 1.1% as well as 0.7% q-o-q, respectively. City-fringe office vacancies have enhanced to 5.5%, while the country openings rate rose to 5.7%.

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“Rochester Commons, the only new Grade-A decentralised workplace development this year, has been mostly pre-committed by Sea Group. The next decentralised Grade-A workplace development, Labrador Tower, will only be finished in 2024,” she clarifies.

Lampard anticipates CBD Grade-A workplace rental development to trend higher, reaching at around 5% for the whole of 2022.

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