Remote working may not be as pervasive in Singapore as initially thought: Knight Frank
The office leasing market remains active with occupiers looking for quality space.
The long-term adoption of hybrid working might not be as pervasive and permanent in Singapore as initially perceived during the height of the pandemic, said Knight Frank in a recent report.
It has been observed that the proportion of staff working remotely is likely to decline from an expected earlier average of 20% to range between 10% and 15%, depending on the nature of the business and work functions.
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A LinkedIn survey revealed that 51% of executives prefer employees to work more frequently in the office, and that remote working roles are declining as productivity goals become an increasingly important priority amid a slowing economy. As such, the leasing market remains active with office users on the continued lookout for better quality space.
For example, Hub Synergy Point, which was recently completed in August 2022, found its first tenant, Celanese, a global chemical and speciality material group, occupying 7,300 sf of space.
There are also more office use innovations in Singapore’s Central Business District (CBD) with the steadily increasing popularity and range of flexibility offered by co-working spaces. Trehaus at Funan, a co-working space operator, incorporates childcare and pre-school services.
Another coworking ecosystem approach is One&Co at Twenty Anson, a Japanese co-working hub and innovation platform that supports Japanese companies expanding into Singapore. Occupiers who are unsure whether to renew or relocate have the interim option of coworking space, especially smaller space users.
With flight-to-quality a characteristic of the office market for some time now, tenants continue to relocate from ageing office buildings as well as those slated to undergo redevelopment, such as Clifford Centre. As more businesses prioritise reducing carbon footprints, quality office buildings with the highest sustainability certifications will become increasingly sought after.