Office Space | Lush Dream Home

Tag Archives: Office Space

Office rent decline eases as confidence returns

Posted on 18 Sep 2009 | Comments Off

Recovery seen next year, but market remains fragile in short-term

OFFICE rents fell for the fourth consecutive quarter, but the pace of decline has eased on the back of returning business confidence, a new report from CB Richard Ellis (CBRE) showed.

Data from the firm said that prime office rents averaged $7.50 per square foot per month (psf pm) in the third quarter. This reflected a 12.8 per cent quarter-on-quarter decrease, compared with the 18.1 per cent decline in Q2 2009 and 18.6 per cent contraction in Q1 2009.

In all, prime rents have fallen 53.4 per cent since their peak in Q3 last year.

Similarly, rents of Grade A office space – which is the top range of prime office space – slipped to $8.80 psf in Q3 2009. This represents a 13.3 per cent quarter-on-quarter decline, which is an improvement over the 18 per cent contraction in Q1 and 17.5 per cent decline in Q2.

However, vacancy rates continued to climb. Grade A vacancy rose to 4.2 per cent in Q2 2009, up from 3.6 per cent in the past quarter. It was 1.2 per cent just a year ago in Q3 2008. The take-up for Grade A space for the first three quarters in 2009 amounted to negative 223,397 sq ft. Likewise, the islandwide take-up was negative 570,000 sq ft for the first half of the year. Continue reading →

Comments Off on Office rent decline eases as confidence returns

Posted in Office / Retail / Industrial, Property Market / Real Estate

Tagged Office Rental, Office Space, Singapore Office, Singapore Office / Retail, Singapore Property

Office rents fall at slower pace in Q3 2009

Posted on 17 Sep 2009 | Comments Off

Office rents in Singapore fell for the fourth straight quarter with prime rentals averaging at S$7.50 per square foot a month in the third quarter of 2009.

Real estate consultancy firm CB Richard Ellis said this is a 12.8 per cent on-quarter drop – an improvement over the 18 per cent decrease a quarter ago.

Grade A office rents fell about 13 per cent on-quarter to S$8.80 per square foot per month. Overall, prime rents have fallen 53.4 per cent since the peak in the third quarter of 2008.

Nonetheless, CBRE said the pace of rental decline has eased as business confidence returns gradually. The firm added that the office leasing market was particularly active in the third quarter due to better economic outlook.

CBRE said Grade A vacancy rose to 4.2 per cent in the second quarter of 2009, compared to 3.6 per cent in the previous quarter.

The islandwide take-up of office space was negative 570,000 square feet for the first half of the year.

CBRE said demand for office space is likely to remain in the negative territory for the rest of 2009. It also expects vacancy rates to stay in the double-digits over the next couple of years.

Source : Channel NewsAsia – 17 Sep 2009