Chart of the Day: Grade A office rents still in a slump, down 9.6% in Q1

Rents start at $8.95 psf.

The office market has yet to recover from the burden of falling rents, as CBRE data for Q1 showed.

CBRE said Grade A CBD Core office rents were down 9.6% YoY to $8.95 psf. Meanwhile, Grade B CDB Core and Grade B Islandwide rents were down 8.8% to $7.52 psf and 8.7% to $6.85 psf.

However, CBRE said whilst this concern lingers, there are some indicators that suggest the office market is close to finding a support level.

"Concerns around supply overhang from the large influx of new office projects are dissipating as these are now attracting stronger pre-commitment," CBRE said.

Meanwhile, higher quality buildings as well as new developments have been the main beneficiaries of improved leasing activity. This was largely a result of occupiers taking advantage of the competitive deals on offer.

"We have observed some expansion with the tech and media sector at the forefront. Some welcome signs of improved interest from the banking and finance sector should also be noted," CBRE said.