Who will occupy UBS' and StanChart's offices in Singapore now?
UBS' One Raffles Quay space is said to be committed to by L’Oréal and others.
Occupiers are now after newer and better-managed spaces as firms place more focus on sustainable workplaces and employees' health and well-being.
For example, JLL says about 95% of the space vacated by UBS at One Raffles Quay has reportedly been committed to by L’Oréal, The Executive Centre, OMERS, and Capital International, etc. The space that Standard Chartered Bank intends to release at Marina Bay Financial Centre Tower 1 has also reportedly received healthy interest from tech firms as well as media and financial services companies.
Here's more from JLL:
Projects completing in 2021 filling up fast
Afro-Asia, in the Shenton Way/Tanjong Pagar submarket, was completed in the CBD in 2Q21. For 2H21, the completion of 21 Collyer Quay and CapitaSpring remain on schedule despite the recent labour crunch situation in the construction sector.
As of 2Q21, 70% or more of the 0.8 million sq ft of office space from new buildings such as Afro-Asia and CapitaSpring have been pre-committed, while 21 Collyer Quay remains 100% committed to by WeWork.
Office rents turn the corner earlier than expected
Rents turned around in 2Q21 after recording five quarters of contraction, driven by continued economic recovery and the demand for better quality, newer and greener office assets.
Capital values of CBD investment grade offices climbed at the fastest pace in eight quarters, supported by continued competition of office assets as well as the bottoming-out of rents.
Outlook: Rents and capital values charting new growth trajectory
Strengthening demand on the back of the global economic recovery and Singapore’s business-friendly offerings, coupled with tightening supply amid limited new completions and possible supply withdrawals due to the redevelopment of ageing office assets should see rents continue to firm up in 2H21.
The bottoming-out of Singapore’s office rents is expected to intensify competition for asset acquisitions and drive a fresh wave of price appreciation. Coupled with the stable political environment, low interest rates and fairly resilient currency, Singapore remains attractive to global investors who are looking for defensive assets in the current uncertain economic climate.
Note: Singapore Office refers to Singapore's CBD Grade A office market in Marina Bay, Raffles Place, Shenton Way and Marina Centre.