Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The restricted available supply, coupled with a mindful company setting, resulted in leasing activity being primarily steered by lease renewals, claims Knight Frank. Nevertheless, select occupants, particularly those with ending leases, are choosing to move to more recent, better-quality buildings in tandem with right-sizing or measured development. Examples of these consist of tech company Zoom Communications relocating from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is preparing to broaden its area in the latter.
Looking forward, JLL expects CBD Grade A office rental growth to remain reasonable for the rest of 2025, with full-year growth forecasted to get to around 3%. Entering into 2026, JLL anticipates office rental development to pick up pace, assisted by a tightening up supply pipeline. “As vacancy rates are projected to tighten in between 2025-2027, whole-floor and multi-floor options will certainly turn into significantly minimal, potentially driving rental rates past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Given the limited office space stock in the following few years, he anticipates quality structures to remain virtually fully inhabited as even more companies make flight-to-quality moves from older structures. In contrast, older and poorly attached buildings will certainly face increasing stress to be redeveloped or modernised.
” Singapore’s office industry has actually been standing up well, partially supported by stronger-than-anticipated economic fundamentals and a more favorable interest rate setting,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
In a different record, research by Knight Frank suggests prime grade office rents in the Raffles Place and Marina Bay places expanded 0.3% q-o-q to reach approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q development recorded in 2Q2025, and brings complete rental growth for the first 9 months of the year to 0.4%.
Granted the uncertain global atmosphere, Knight Frank expects sentiment to remain careful amongst office tenants over the following 6 to 12 months. “Because of this, prime rental development for the last quarter of 2025 is expected to continue to be fairly level with some minimal growth, with even more of the very same going into the first fifty percent of 2026,” the record states.
Leas for top workplace in Singapore kept on expanding in 3Q2025, based upon research study from property consultancies. In its latest quarterly workplace market report, JLL’s research study shows that Grade A workplace leas in the CBD raised 1.3% q-o-q to $11.83 psf monthly (psf pm) past quarter, the biggest quarterly growth in six quarters.
The greater growth was largely attributed to the addition of IOI Central Boulevard Towers to the basket of real properties kept track of by JLL. Excluding IOI Central Boulevard Towers, CBD office rents climbed by less than 1%, on par with the past six quarters.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to top quality space have actually developed a two-tier market where newer, well-connected structures grow and older supply faces expanding vacancy pressure.”
Knight Frank’s report found that occupancy status for office spaces in the Raffles Place and Marina Bay precinct stayed unchanged at 94.7%, while overall CBD occupancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
