According to Knight Frank’s research report, prime grade office rents in Singapore’s Raffles Place and Marina Bay precinct increased by 0.6% quarter-on-quarter in 3Q2024, reaching an average of $11.35 per square foot per month. However, this growth was slightly slower than the 0.7% quarter-on-quarter expansion seen in 2Q2024.
The latest data shows that prime office rental growth for the first nine months of 2024 was at 2%, lower than the 3.4% growth recorded during the same period last year. This slower growth can be attributed to a lack of expansions by large occupiers, particularly tech companies. Calvin Yeo, Managing Director of Occupier Strategy and Solutions at Knight Frank Singapore, notes that many tech companies are postponing their expansion plans due to a slowdown in the tech sector and an uncertain economic climate.
Instead of expanding, several tech firms have chosen to downsize their office spaces. For example, Facebook’s parent company, …