Chart of the Day: Average Grade A office rents in these 3 areas up 0.2%

Construction works dragged rental growth.

According to Knight Frank, average Grade A office rents in Shenton Way / Robinson Road / Tanjong Pagar precinct posted 0.2 per cent gain q-o-q. 

The existing inconveniences in the area with various ongoing construction works have dragged new lease signings and office rental growth. Despite the negative externalities, the area’s close proximity to the heart of CBD and its lower office rents compared to Raffles Place are key draws particularly for tenants with tighter budgets.

In addition, the Tanjong Pagar precinct is gradually transforming itself to incorporate residential and retail developments, enhancing its attractiveness to offer amenities for both working and resident populace in the area.

For instance, 6 Shenton Way (formerly known as DBS Towers) with a combined net lettable area of 867,000 sq ft will convert its existing podium to incorporate a retail mall and some of its office space to service apartments .