Tag Archives: Office Space

Fresh supply coming to the market outstrips rejuvenated demand

‘Demand will be reasonably strong next year, but vacancy rates will continue to rise through 2010 on the weight of new supply completion.’- Moray Armstrong, CB Richard Ellis

THE office market posted a positive take-up of 3,000 square metres (or 32,292 square feet) in the third quarter of this year – reversing three consecutive quarters of negative take-up, according to latest figures released by Urban Redevelopment Authority (URA).

SPANKING NEW Among the projects that were completed in the July to September period this year were Mapletree Anson, 71 Robinson Road and transitional office developments at Scotts Road and Anthony Road

Office take-up shrank 247,570 square feet in Q2 this year, 322,917 sq ft in Q1 2009 and 365,973 sq ft in Q4 last year.

Despite Q3’s positive take-up figure, vacancy rates continued to rise and rents slipped further in the third quarter as the supply of new office space completed doubled to 1.25 million sq ft in Q3 this year from 552,188 sq ft in the preceding quarter.

Among the projects that were completed in the July to September period this year were Mapletree Anson, 71 Robinson Road and transitional office developments at Scotts Road and Anthony Road.

The islandwide vacancy rate for office space rose from 10.8 per cent as at end-June 2009 to 12.2 per cent as at end-September.

The vacancy rate for URA’s Category 1 space – which covers major office buildings in the Downtown Core and Orchard Planning Area that are modern or recently spruced up, and have big floor plates – increased from 6 per cent as at end-June to 6.5 per cent as at end-September.

The vacancy rate for Category 2 space – which refers to the remaining office space on the island – climbed from 11.9 per cent to 13.4 per cent over the same period, reflecting the flight to quality among occupiers that property consultants have been talking about. Continue reading →

SP Services leases 100,000 sq ft at Mapletree Business City

THE flight to quality continues in the Singapore office market as occupiers move from older buildings to newer ones.

In demand: About 45 per cent of 20 Anson’s 204,000 sq ft net lettable area has been committed – up from zero just three months ago

More than 90,000 sq ft has been leased to six tenants at 20 Anson, a swanky 20-storey office tower that received Temporary Occupation Permit (TOP) earlier this month. As a result, 45 per cent of the building’s 204,000 sq ft net lettable area has been committed – up from zero just three months ago.

‘Given current negotiations with three other parties, we expect to be 70 per cent committed in six weeks,’ said Jones Lang LaSalle’s head of markets, Singapore, Chris Archibold. JLL is the marketing agent for 20 Anson, representing its owner, FirstOffice Pte Ltd, which is linked to La Salle Investment Management.

The neighbouring Mapletree Anson is also said to have clinched a tenant recently for the top floor (19th floor) – Noble Group, which will occupy about 21,000 sq ft. It will be relocating from PSA Building.

Over in the Alexandra Road area, Mapletree Business City has secured its latest office tenant – SP Services, which has leased about 100,000 sq ft and will be moving out of its existing location at TripleOne Somerset (formerly known as Singapore Power Building). Continue reading →