Apac office occupiers still willing to pay higher rents for quality locations: Colliers

Amid this environment, Colliers thinks occupiers can capitalize on the unpredictability in the market in 1H2024 to negotiate their demands, avoiding positive rent reversions in the future.

“Amid this instance, business offices today, albeit with much higher labor force adaptability, continue to be the epicentre of the services society, with moving choices being underpinned by ability method and ESG objectives,” observes Mike Davis, handling director of occupier services for Apac at Colliers.

Office residents around the Asia Pacific (Apac) area are still willing to pay higher rents for premium and amenity-rich locations, according to an April research file by Colliers.

It even emphasize that prioritising durability efforts and pushing staff member engagement and complete satisfaction will even more add to occupiers achieving price financial savings.

In Singapore, Colliers indicates that a flight to quality and minimal pockets of space prompted a rally in rental fees in 1Q2024. Core CBD costs and Grade-A rental fees increased 0.7% q-o-q to $11.57 psf monthly after 2 consecutive quarters of downtrend.

Regardless, the marketplace remains mixed, says Bastiaan van Beijsterveldt, Colliers’ regulating supervisor for Singapore. While rents in premium structures in great locations are holding up, rental assumptions have actually softened for structures with persistent vacancies and high upcoming additional spots.

In its statement, Colliers chart its concerns for office occupants wanting to accomplish price financial savings. These include straightening workplace approach to organization objectives, settling space, monetising non-core assets, disposing or sub-leasing unwanted space, and investing in technological innovation and good solutions for much better space utilisation.

He expects property managers to encounter raising competition in the near term as even more supply comes in, while new versatile job standards might prompt a lot more firms to right-size according to their requirements.

This happens in spite of occupiers being extra cost-conscious. Colliers feature that top of mind for Apac business leaders is how to optimize assets and increase cost savings and drive development, whilst contending with obstacles like inflation, competition for ability, the demand to digitalise, and the rising stress of climate development.

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