6 Significant office leasing transactions in 3Q

Topping the list is a tenant at NTUC Prinsep House.

Rental recovery continued this quarter, due to moderate demand and limited supply.

Cushman & Wakefield report that the Average overall Grade A rent appreciated by 2.8% on a quarter-on-quarter basis to S$9.28 per square foot per month (psf/mo).

All the five major submarkets registered a rise in average rent.

Raffles Place had a rental growth of 1.3%.

Rents at Marina Bay edged up, but at a lower speed, partially because of the vacant space of Asia Square Tower 2.

The average rent at Shenton Way expanded quarter-on-quarter by around 6.0%.

A small rise of 1.6% compared to the preceding quarter at City Hall was observed.

The delivery of Asia Square Tower 2 to the market this quarter pushed up Marina Bay’s average vacancy rate to 11.2% from 3.6% recorded a quarter ago.

In the rest of the CBD, vacancies fell. Shenton Way saw a declineof almost one percentage point to 4.0% at the end of the third quarter.

Raffles Place’s vacancy dropped to a level below 5.0%. In the fringe area, Orchard Road posted a low vacancy of 0.1%, the lowest reading among the main submarkets.

City Hall’s vacancy reached a below-0.6% rate.

In terms of recent leases, Amazon took up around 30,000 sf in Capital Square at Raffles Place. ERC, a commercial school, rented more than 46,000 sf of space in NTUC Income Prinsep House at Bras Basah/Beach Road/Bugis.

The complete list of significant leasing transactions are as follows: