Here’s why relocating firms are a double-edged sword for landlords

The resulting vacancies put pressure on overall rents.

Currently, Singapore businesses are taking advantage of the the market situation to jump ship into upcoming or newer buildings.

According to a report by Knight Frank, some firms are also grabbing the opportunity to restructure their current leases as landlords compete to lure in and retain tenants.

“Although such relocations cater for future headcount growth, they are largely without exponential expansion in size given the enhanced floor plate efficiencies of the latest buildings and fit-out configurations,” said Calvin Yeo, executive director and head of Office Advisory, Knight Frank Singapore.

“The vacancies in buildings arising from these relocations would in turn put pressure on overall rents but offer opportunities in buildings that were previously well occupied. The increasing competitiveness in office occupancy costs would also bode well for multinational companies looking to grow or set up their footprint in Singapore,” Yeo added.