In its annual “Office Space across the World” report, Singapore’s office market saw the biggest hike in occupancy costs of 9.8% in 2014, says Cushman & Wakefield. And even though Singapore moved up one spot to 12th in terms of overall occupancy cost, it is still 49% lower than that of Hong Kong, which is ranked the second most expensive city in the world, after London. In spite of the lack of new supply of office space in Singapore this year, there is an estimated 1.59 million sq ft of shadow space available, owing to sub-leasing and companies relocating, notes Toby Dodd, Cushman & Wakefield’s country head. Office space demand is forecast to be around 800,000 sq ft this year, and is expected to rise to 1 million sq ft in 2016.

This article appeared in the City & Country of Issue 667 (Mar 09) of The Edge Singapore.