Apac office occupiers still willing to pay higher rents for quality locations: Colliers
In Singapore, Colliers mentions that a trip to quality and limited pockets of space prompted a bounce back in rental fees in 1Q2024. Core CBD premium and Grade-A rental fees climbed 0.7% q-o-q to $11.57 psf per month after two consecutive quarters of downturn.
Office occupiers around the Asia Pacific (Apac) region are still able to pay increased leas for quality and amenity-rich locations, according to an April study file by Colliers.
“Amidst this scenario, offices nowadays, albeit with a lot greater workforce versatility, continue to be the epicentre of the work culture, with relocation options being underpinned by ability strategy and ESG goals,” monitors Mike Davis, managing director of inhabitant companies for Apac at Colliers.
This comes in spite of tenants being much more cost-conscious. Colliers feature that top of mind for Apac business leaders is how to optimise resources and increase financial savings and drive development, while emulating challenges like rising cost of living, competitiveness for skill, the demand to digitalise, and the increasing tension of environment development.
He prepares for property managers to deal with increasing competitors in the near term as even more source comes in, while new versatile job guidelines might urge much more companies to right-size according to their needs.
It also accentuate that prioritising sustainability efforts and steering worker engagement and contentment will certainly further contribute to occupiers attaining expense financial benefits.
Nevertheless, the marketplace stays mixed, claims Bastiaan van Beijsterveldt, Colliers’ handling supervisor for Singapore. While rents in premium buildings in excellent locations are standing up, rental requirements have softened for structures with persistent openings and high upcoming additional spaces.
In its statement, Colliers outline its concerns for workplace tenants wanting to achieve cost savings. These include aligning workplace approach to organization goals, combining area, monetising non-core possessions, disposing or sub-leasing extra area, and purchasing technological innovation and effective services for far better place utilisation.
Amid this environment, Colliers believes occupiers might capitalize on the unpredictability on the market in 1H2024 to work out their requirements, preventing favorable rental fee reversions in the years to come.
