DEMAND FOR VERSATILE SPACE, GREEN ADVANCEMENTS
Demand for flexible area has rebounded . It was reported that enquiries for JustCo’s workplace solutions went up by more than 40 per cent in the first quarter of 2022 compared to the previous quarter, with a spike just after the easing of some restrictions in March.
JustCo has plans to spread out a new centre in International Plaza at the begining of 2023. Another flexible-space provider WeWork also opened its biggest centre in the region in phases from Come july 1st this year.
Underpinned with the emphasis on employees’ health and wellbeing as well as sustainable workplaces, occupier demand provides gravitated towards the newer and greener advancements.
CapitaSpring achieved a 93 per cent leasing commitment rate by the time it received Temporary Profession Permit at end-2021 during the pandemic, while pre-commitment rates of Guoco Midtown and IOI Central Chaussee Towers scheduled pertaining to completion in 2022 and 2023, respectively, are climbing gradually.
OFFICE RENTS NEARLY BACK TO PRE-PANDEMIC PEAK
The outbreak has accelerated financial obsolescence of offices and provided the impetus to redevelop ageing assets. The latest to join the likes of AXA Tower , Fuji Xerox Towers, Keppel Systems and Shaw Tower system in undergoing redevelopment is Clifford Center in Raffles Location.
As a result, despite new completions, the growth in CBD office inventory has fallen behind that for demand. This has provided the phase for rents to climb .
Pertaining to Grade A workplace spaces in the CENTRAL BUSINESS DISTRICT, the average monthly gross effective rents have been rising at an accelerated pace every one fourth since bottoming out in early 2021. By the second quarter of 2022, they had recovered to achieve S$10. 74 per sq ft, simply slightly below their particular pre-pandemic peak of S$10. 81 for each sq ft in the fourth quarter of 2019.