Rent for office space saw its steepest decline in third quarter of 2020 in 11 years, according to official data released by URA.
On a quarterly basis in July-September, rents fell 4.5 per cent, the biggest quarterly decline since April-June period in 2009 when rents fell by 7.7 per cent.
With measures implemented due to Covid-19 pandemic, companies are to observe safe distancing measures in their office premise.
Companies are also encouraged to allow office workers to work from home, resulting in under-utilisation of their business space.
Coupled with business uncertainty, tenants facing lease expiry may return a fraction of their office space and seek short-term renewals.
Retrenchment arising from recession has been on the rise, and this will also contribute to companies reducing their office size upon lease renewal.
Opportunity for attractive rent in District 1?
On flip side, businesses not suffering any impact from the pandemic may seize the opportunity to relocate their office to prime space in Singapore CBD at attractive rates.
The planned redevelopments of AXA Tower and Fuji Xerox will displace tenants, potentially minimising the increase in vacancy rate of office space.
Price of office space in District 1
Data released also showed prices of office increased by 0.2 per cent.
Transacted office space in District 1 for this quarter comprises small sized units from 366 – 3079 sqft, with nearly half of them located at The Central at Clarke Quay.
This unique development on a white space is located at Eu Tong Sen Street, and is doorstep to Clarke Quay MRT station.
It comes integrated with office space on 4 office towers with common facilities such as swimming pool and gym, and a retail mall with Don Don Donki as one of their anchor tenants, on lower levels.
Interested to know more on office space at The Central @ Clarke Quay?
Please call or whatsapp Poh Lin at tel no. (65) 96700937 for more information on office space for rent or sale at The Central @ Clarke Quay or to arrange for viewing. Alternatively, send me a message in Contact Form.