Office rents in Raffles Place catching up with those in Marina Bay

The rental gap between the two areas of Raffles Place and Marina Bay was 4 %  in the third quarter, the smallest differential since 2011, according to Cushman & Wakefield.

Grade-A office rents in Marina Bay dropped 19 %  in the first three quarters of 2015 to S$10.70 per square foot per month (psf pm); office rents in Raffles Place fell by only 0.7 % to S$10.31 psf pm.

The rental resilience of Raffles Place is attributed to higher occupancies amid tenant loyalty and positive net absorption of office space, as well as a lack of Grade-A office supply within Raffles Place.

Office occupancy rate in Raffles Place hit 97.1 % in Q3 from 96.5 per cent%  in the Q2, while net absorption for Grade-A offices in Raffles Place totalled 110,000 sq ft so far in 2015. There is also a more diversified tenant profile in Raffles Place, where banking, insurance and financial services occupy some 44 per cent of floor area compared to 64 per cent in Marina Bay.


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