Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, watches that “selective upgrades to high quality space have actually created a two-tier market where more recent, well-connected structures prosper and older supply encounters growing vacancy stress.”
Looking ahead, JLL expects CBD Grade A office rental growth to remain reasonable for the rest of 2025, with full-year development predicted to get to approximately 3%. Entering into 2026, JLL forecasts workplace rental growth to pick up speed, assisted by a tightening supply pipeline. “As vacancy prices are predicted to tighten in between 2025-2027, whole-floor and multi-floor options will certainly come to be progressively restricted, potentially driving rental prices beyond some lessees’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
In a different report, study by Knight Frank shows prime grade office rents in the Raffles Place and Marina Bay spots expanded 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q development recorded in 2Q2025, and brings total rental growth for the initial nine months of the year to 0.4%.
Given the limited workplace stock in the next few years, he anticipates quality buildings to remain almost fully occupied as more companies make flight-to-quality moves from older buildings. In contrast, older and poorly linked structures will face increasing pressures to be redeveloped or modernised.
” Singapore’s workplace industry has actually been holding up well, in part maintained by stronger-than-anticipated financial basics and a more conducive interest rate setting,” mentions Dr Chua Yang Liang, head of study and consultancy for JLL Southeast Asia.
The minimal offered supply, combined with a careful company setting, brought about leasing activity being primarily driven by lease renewals, states Knight Frank. Nonetheless, select occupants, specifically those with concluding leases, are selecting to transfer to more recent, better-quality buildings in tandem with right-sizing or measured expansion. Instances of these consist of tech business Zoom Communications transferring from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading firm Jane Street is preparing to expand its area in the latter.
Rents for top office in Singapore proceeded expanding in 3Q2025, based on study from realty consultancies. In its latest quarterly workplace market report, JLL’s study shows that Grade An office rental fees in the CBD improved 1.3% q-o-q to $11.83 psf monthly (psf pm) past quarter, the biggest quarterly growth in 6 quarters.
Presented the unsure international atmosphere, Knight Frank anticipates sentiment to continue to be careful among workplace occupiers over the following six to 12 months. “Because of this, prime rental growth for the last quarter of 2025 is anticipated to remain rather flat with some minimal development, with even more of the same entering into the very first fifty percent of 2026,” the record states.
Knight Frank’s report found that tenancy status for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while general CBD tenancy grown from 93.7% in 2Q2025 to 94.2% in 3Q2025.
The higher growth was mostly credited to the enhancement of IOI Central Blvd Towers to the basket of properties kept track of by JLL. Excluding IOI Central Blvd Towers, CBD workplace rents increased by less than 1%, on par with the previous 6 quarters.
