Space doesn’t matter: Big-time global firms flock to Singapore despite office space dearth

Demand hits 14-year high in 2014.

A shortage in office space is not deterring multinationals from establishing regional and global headquarters here, as Singapore remains more attractive compared to its regional counterparts.

Among the multinationals expected to settle in the country is General Motors, which will be shifting its international headquarters to Singapore from Shanghai by 2Q14 in order to manage key portions of the company’s business in Asia-Pacific, Africa, the Middle East, and Chevrolet and Cadillac Europe.

Japanese banking giant Mizuho is also taking up 100,000sf of space in Asia Square 2, while IT and technology firms such as Booking.com andAmazon have signed and renewed 45,000sf and 30,000sf of space at Marina Bay Financial Centre Tower 3 (MBFC) and Capital Square respectively.

Google is also looking to double its space commitments from 150,000sf currently at Asia Square Tower 1, which is 90% occupied.

Other multinationals include Barry Callebaut, the world’s largest chocolate manufacturer, will likewise be shifting its headquarters from Malaysia to Singapore, and Australia’s Cotton On Group, which launched its Asian headquarters in Singapore in Feb 14, committing to hiring a team of 200 people by 2018.

According to UOB Kay Hian, office space demand is expected to hit 2.2m square feet in 2014, anchored on increasing demand, an improved outlook for global economies, and a dearth in new office space supply.

This double the average take-up of 1.1m sf since 2001, 29% higher than the 1.7m sf take-up for 2013.