COTD: CBD Grade A office market to tighten from 2025 to 2027

It will only rebound in 2028.

From 2025 to 2027, the new CBD Grade A office market is expected to face tighter supply conditions, according to Cushman & Wakefield.

C&W attributed this to the high supply levels in 2024, which reached 1.2 million square feet (msf) following the completion of IOI Central Boulevard Towers. This current supply surpasses the 10-year average annual net demand of 0.8 msf.

In 2025, the market will see the addition of Keppel South Central. However, the completion of Shaw Tower, originally scheduled for 2025, has been delayed to 2026.

After this period of tighter supply, the market is expected to rebound in 2028, according to C&W.

Given the anticipated decline in interest rates and delays in new office completions, C&W said occupiers should be ready to seize opportunities before a potential increase in optimal space availability.