Chart of the Day: Occupied Grade A office space in CBD hit 520,000 sq ft in 1Q14

Thanks to strong commitment levels.

According to Savills, due to the healthy commitment level at Asia Square Tower 2, the net absorption of Grade A office space in the CBD reached about 520,000 sq ft in Q1/2014. 

Although it is still short of the net supply of 780,000 sq ft contributed by the same development, it is already more than half of the 973,000 sq ft for the whole of last year.

Here's more from Savills:

The overall vacancy rate of CBD Grade A offices therefore rose 0.9 of a percentage point (ppt) from 3.4% in Q4/2013 to 4.3% in Q1/2014.

The vacant space left in Asia Square Tower 2 pushed up the vacancy rate in the Shenton Way area to 10.6% by the end of March, from 4.6% three months ago.

On the other hand, the vacancy rate in most of the other submarkets, including Raffles Place/Marina Bay, Tanjong Pagar and Beach Road/Middle Road, fell by 0.3 to 2.1 ppts quarter-on-quarter (QoQ).

By grade, the AAA segment saw its vacancy level increase by 3.9 ppts to 6.5% by the end of March. In contrast, office space in other segments continued to be absorbed, with vacancy falling by 0.2 of a ppt to 2.9% for AA Grade and 0.3 of a ppt to 3.7% for A Grade.