Grade A office occupancy rate at its highest in five quarters

The average rate in the CBD reached 93.1% in 3Q12.

According to Colliers International, the average occupancy rate of Grade A office space in the Central Business District (CBD) strengthened from 92 per cent in 2Q 2012 to 93.1 per cent in 3Q 2012, the highest in five quarters.

Occupancy rates of micro markets surrounding the Marina Bay area, namely, the City Hall/Marina and Raffles Place/New Downtown micro-markets, recorded the highest jump of 2.6 and 1.7 per cent, respectively, during the quarter.

For instance, sustained demand for quality office space in the Raffles Place/New Downtown micro-market can be observed from the absorption of space at the six-month-old Marina Bay Financial Centre (MBFC) Tower 3.

Overall commitment rate for MBFC Tower 3 increased from about 68 per cent in 2Q 2012 to some 76 per cent in 3Q 2012, with new tenants – including the shipping company, Berge Bulk; the investment firm, Clifford Capital; the law firm, Clyde & Co; and the pediatric nutrition company, Mead Johnson; among others.

Take-up in other new office buildings in Raffles Place/New Downtown micro-market during the quarter was also encouraging.

The UK law firm, Freshfields, leased an office space at Ocean Financial Centre, while the online foreign exchange trading service provider, Oanda Asia Pacific, expanded its operations in Singapore, moving from China Square Central to OUE Bayfront.

Over at Centennial Tower in the City Hall/Marina micro-market, nearly 90 per cent of the 129,000 sq ft of space that was vacated by Citi last year has been taken up by both new and existing tenants, including Sumitomo Mitsui Banking Corporation and a leading management consulting firm.