CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield
Rental Fees for CBD Grade-A workplaces have increased by 2.1% in 1Q2022, higher than the 1.7% growth in the previous quarter, according to a report by Cushman & Wakefield on April 6. This comes as openings prices for CBD Grade-A workplaces tightened to 4.6% from 4.9% in the last quarter.
Lampard expects CBD Grade-An office rental growth to trend higher, reaching at around 5% for the whole of 2022.
“Rochester Commons, the only brand-new Grade-A decentralised workplace development this year, has actually been mostly pre-committed by Sea Group. The next decentralised Grade-An office development, Labrador Tower, will only be finished in 2024,” she clarifies.
Overall, Cushman & Wakefield continues to be positive on the Singapore workplace market overview, regardless of “raising drawback threats”. While it does not prepare for the Ukraine battle to have a straight influence on the Singapore office market, inflationary pressures are expected to remain elevated as a result of higher energy rates and also supply-chain disruptions worsened by lockdowns in China, which is a vital trade partner for Singapore.
Nevertheless, the continuous economic uncertainties can possibly slow down the rise of rate of interest, says Mark Lampard, head of business leasing, Singapore, at Cushman & Wakefield. The resuming of Singapore’s economic situation will certainly also improve occupiers’ assurance to take up extra office space, he adds.
Wong Xian Yang, head of research study, Singapore, at Cushman & Wakefield, anticipates ongoing healing for the decentralised office market, given industrial decentralisation activities, spillover need from the CBD, as well as minimal brand-new Grade-A decentralised workplace supply.
Rental fees in decentralised workplace markets also continued to come along. Office rental fees for all grades in the city edge and country sectors grew by 1.1% and 0.7% q-o-q, specifically. City-fringe workplace vacancies have enhanced to 5.5%, while the suburban vacancy price equaled 5.7%.