The rent for Premium and Grade A offices at the Raffles Place and New Downtown keep rising during the 1st quarter of 2014. Office vacancies are also decreasing and businesses are more proactive at expanding and relocating to secure rental fees before they further go up.
After obtaining its Temporary Occupation Permit in September, Asia Square Tower 2 is already enjoying numerous deals recently. This series of deals has resulted to more than 200,000 sqf of space being leased out over the past 6 months according to Mr. Luke Moffat- the Leasing Head.
The tenants of Asia Square Tower 2 include the iconic Mizuho which occupied 105,000 sqf and Westpac with 38,000 sqf. Some of the latest occupants are Mercuria Energy Trading which leases 21,000 sqf, Scor RE with 20,000 sqf, Nikko Asset Management which occupies 17,000 sqf of space and an Los Angeles-based private equity company- Platinum Equity Partners which rents 4,000 sqf of the space. This is Platinum Equity’s initial entry in the country.
As of the latest count, Tower 2’s total current lease has covered 60% of the commercial area’s 780,000 sqf space. On the other hand, Tower 1 has 90% of occupancy rate which translates to 1.26 million square feet of offices.
The rental deals at Tower 2 is set for monthly rental rates from low to mid-teens. The smaller deals of less than a floor inked at the mid-teens and above, shared Mr. Moffat.
Currently, 6 whole floors of about 30,000 sqf each are still vacant. Tower 1, on the other hand, still has 3 vacant floors with each with 35,000 square feet of space and with an asking rent of $18psf monthly.
Quarter by quarter, it is observed that the average monthly gross rent for Premium offices in Raffles Place go up. During the First Quarter, there is a 3.6% increase or $10.67 per sqf which follows the 3.8% increase of 2013’s 4th Quarter.
Reference: Business Times 20 March 2014