Business park market registers positive net absorption of 0.57 mil sq. ft.

Vacancy rates also saw a double-digit q-o-q decline.

The business park market saw a positive net absorption of 0.57 mil square feet, according to a report released by CBRE. 

Vacancy rate, meanwhile, saw a q-o-q decline to 12.2%, from the previously recorded 13.1%. 

This performance was due to the fulfillment of A-REIT’s build-to-suit facility for Grab Holdings Inc. along Media Close. 

Due to firms adopting the hybrid working model, consolidation and downsizing efforts were in effect. Even with this trend, however, the technology sector, as well as select firms from the pharmaceutical, ecommerce and gaming industries actively sought space in the market. 

The City Fringe submarket experienced a strong demand, leading to a rise in rents by 0.9% q-o-q to $5.85 psf/month. The report points to higher rental expectations due to the limited options in the area. 

On the other hand, the Rest of Island submarket experienced less demand, and unlike City Fringe, rents for this submarket hovered at $3.65 psf/month.