Rents for premium, Grade A offices in CBD predicted to jump in 2H

Are market sentiments improving?

According to Colliers International, on the back of improving market sentiments and demand for efficient floor layouts, rents for Premium and Grade A office space in the CBD are expected to head north in 2H 2013.

Driven by tenants’ continued flight to quality, leasing demand increased for Premium Grade office space in the Raffles Place / New Downtown micro-market.

Positive demand lifted the overall occupancy rate of Premium and Grade A office space in the CBD to 95.2% QoQ as of June 2013, the highest level in 4.5 years.

Consequently, the average monthly gross rents for CBD Premium and Grade A office space rose for the first time since the market downturn in 4Q 2011, inching up 0.1% QoQ to S$8.42 psf in 2Q 2013.