Average office rents in the CBD predicted to surge 0.2%-0.3%

Occupancy rates to 'modestly fluctuate'.

According to Knight Frank, with more enterprises commencing their search for new office locations, leasing activity is expected to increase till end-November 2013 before the year-end vacation season. Knight Frank forecasts overall rents to inch up by around 0.3 per cent q-o-q in 4Q 2013, on the back of improving business sentiment, rising rent expectations from landlords and the addition of new office developments. 

Average rents in the CBD area are likely to stay firm or register modest increases of between 0.2 to 0.3 per cent for the last quarter this year.

Here's more from Knight Frank:

In view of the new office supply release in 3Q 2013, modest fluctuations in occupancy rates for the next two quarters are likely to be expected in the range of 87 to 89 per cent especially in Downtown Core.

With only 26 per cent occupancy rate in Asia Square, relocations and “flight to quality” by tenants from older Grade A buildings are expected. Fringe Area occupancy change is expected to be more stable as existing tenants prefer lower rents in their current locations.