Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The restricted offered supply, paired with a cautious organization setting, brought about leasing event being predominantly steered by lease renewals, states Knight Frank. Nevertheless, select occupants, specifically those with expiring leases, are selecting to move to newer, better-quality buildings in tandem with right-sizing or measured expansion. Instances of these include tech company Zoom Communications transferring from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading company Jane Street is intending to expand its area in the latter.
Rentals for top workplace in Singapore proceeded expanding in 3Q2025, based upon research from real estate consultancies. In its most recent quarterly office market report, JLL’s research study reveals that Grade A workplace rents in the CBD increased 1.3% q-o-q to $11.83 psf monthly (psf pm) previous quarter, the biggest quarterly development in 6 quarters.
The higher development was mainly attributed to the addition of IOI Central Blvd Towers to the basket of real properties monitored by JLL. Removing IOI Central Boulevard Towers, CBD office rents increased by lower than 1%, on par with the past 6 quarters.
Looking forward, JLL expects CBD Grade A office rental development to remain modest for the remainder of 2025, with full-year growth forecasted to reach around 3%. Entering into 2026, JLL predicts office rental growth to pick up pace, assisted by a tightening up supply pipeline. “As vacancy prices are projected to tighten up in between 2025-2027, whole-floor and multi-floor opportunities will certainly become increasingly limited, potentially driving rental prices beyond some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
In a different record, research by Knight Frank indicates prime grade office rental fees in the Raffles Place and Marina Bay places expanded 0.3% q-o-q to reach an average of $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 nine months of the year to 0.4%.
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to top quality space have actually produced a two-tier market where more recent, well-connected structures thrive and older stock faces expanding vacancy pressure.”
Knight Frank’s report found that occupancy levels for office spaces in the Raffles Place and Marina Bay precinct stayed unchanged at 94.7%, while total CBD occupancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Given the limited office space stock in the next couple of years, he anticipates quality buildings to continue to be virtually completely occupied as more companies make flight-to-quality moves from older structures. On the other hand, older and poorly attached structures will face increasing stress to be redeveloped or modernised.
Presented the uncertain international atmosphere, Knight Frank expects sentiment to continue to be mindful amongst workplace tenants over the following six to one year. “Because of this, prime rental development for the last quarter of 2025 is expected to stay rather flat with some low development, with even more of the exact same going into the initial fifty percent of 2026,” the record states.
” Singapore’s workplace industry has actually been holding up well, partly supported by stronger-than-anticipated economic principles and an extra conducive interest rate setting,” states Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
