Saturday, October 07, 2006
[RealEdge] TodayOnline : Office occupancy continues to rise, Grade A space almost full
 This story was printed from TODAYonline | |
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| Office occupancy continues to rise, Grade A space almost full Friday ? October 6, 2006 The vacancy rate in Singapore's central business district fell to 4.5 per cent in the third quarter from 7.1 per cent in the preceding quarter due to continued high demand for office space, real estate consultancy CB Richard Ellis (CBRE) said yesterday. CBRE said office availability was tightest for Grade A offices within the Raffles Place, Marina Centre and Shenton Way areas, as occupancy rose to 99.3 per cent in the July-September quarter from 97.3 per cent in the preceding quarter. These three areas constitute the central business district. "A backdrop of strong tenant expansion and limited availability has created conditions for strong rental growth. Landlords were in a strong position and their expectations have risen accordingly, According to CBRE, average prime rents in Singapore rose 15 per cent quarter-on-quarter to $6.90 per square foot per month as of the end of September, while rent for Grade A offices gained 11.8 per cent to average $7.60 per square foot per month. "We are projecting prime rents and Grade A rents to reach $7.30 per square foot per month and $8.30 per square foot per month, respectively, by end-2006," it said. CBRE also said that the office market outside the city centre had an average vacancy rate of only 1.5 per cent in the third quarter, down from 6 per cent in the second quarter, making it difficult for tenants to save on rent by relocating to less-prime areas. Grade A office space is generally defined as space in prominent, well-maintained office buildings with large floor-plates and high ceilings to facilitate the use of high speed data networks. ? Dow Jones | |
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// posted by Shajahan @ 1:18 AM 