Tighter supply in the office market, coupled with an ongoing flight to quality, is expected to make it harder for tenants seeking quality office space (Picture: Samuel Isaac Chua/EdgeProp Singapore)
Occupiers seeking quality office space over the next two years are likely to face stiffer competition. This comes as a lack of supply and persistent demand for newer buildings limit choices, said office leasing specialist Corporate Locations in its 2Q2026 Singapore Office Market Review.
Between 2026 and 2027, the sole major office slated for completion is Shaw Tower — the 33-storey, 450,000 sq ft office development on Beach Road that is targeted to receive its temporary occupation permit (TOP) in July.
Apart from this, the only other sizeable source of new office supply is 39 Robinson Road. The refurbished former Robinson Point office building is estimated to receive its TOP in December and will introduce 165,000 sq ft of office space.
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As a result, the tight supply pipeline is expected to put pressure on tenants looking to upgrade into better spaces, says Corporate Locations. “Tenants may need to be more flexible on location to secure the quality of space they require within budget,” says its managing director Douglas Dunkerley.
This comes as flight-to-quality movements continue to drive leasing activity in Singapore. Corporate Locations says that demand for newer, well-located buildings helped to push rental rates for Grade A offices past $14 psf per month (pm), as companies prioritised better spaces and improved amenities to help attract and retain talent. The firm expects Grade A office rents to see further growth of 2.5% to 3% this year.
For the upper-mid-range office space, rates currently remain in the $11.50 to $12 psf pm range, while lower mid-range office spaces are being rented for between $8.50 and $9.50 psf pm.
Leasing interest remains predominantly focused on the CBD and the financial district, with the Raffles Place-Downtown area commanding the highest rents. Figures in Corporate Locations’ report show that as of April, asking rents for buildings in the area range from $8 to $18.50 psf per month (psf pm), inclusive of service charge.
Amid the ongoing flight to quality, IOI Central Boulevard Towers remains one of the most sought-after options among occupiers, with available space “filling up quickly”, the report states. Current asking rates at the building range from $14.80 to $18.50 psf pm.
IOI Central Boulevard Towers (centre) remains one of the most sought-after options for occupiers (Picture: Albert Chua/The Edge Singapore)
The Grade A office development in Marina Bay, which has 1.26 million sq ft of net lettable area, was completed in 2024. Going by a quarterly financial update published by IOI Properties Group on Feb 27, the towers had secured a committed occupancy rate of 96%.
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Companies that recently moved to IOI Central Boulevard Towers include New York-headquartered Virtu Financial, which has taken up a full floor. The fintech firm was previously at 1,557 Keppel Road. US investment firm Franklin Templeton also shifted to IOI Central Boulevard Towers — from Suntec Tower 1 — occupying 1½ floors at the new address.
Leasing demand has also been supported by occupiers shifting spaces due to redevelopment. In Tanjong Pagar, Corporate Locations highlights brisk leasing activity underpinned by tenants moving from 79 Anson Road.
The freehold 23-storey office building owned by Yanlord Land Group’s United Engineers is being redeveloped into a 28-storey, mixed-use project with offices, retail space and serviced apartments.
Tenants who have moved from the building include Japan Travel Bureau, which relocated to Keppel South Central last month. Other buildings in the vicinity, such as Hub Synergy Point and ABI Plaza, have also seen space taken up, notes Corporate Locations.
In Tanjong Pagar, tenants at 79 Anson Road, which is undergoing redevelopment, have shifted to surrounding premises such as Keppel South Central (Picture: Samuel Isaac Chua/EdgeProp Singapore)
Similarly, occupiers at HarbourFront Centre are moving, ahead of the development’s closure scheduled for 2H2026. The site will make way for a new 33-storey building with office and retail spaces.
Office tenants at the development have moved to the neighbouring development, Harboufront Tower 1, as well as to mTower on Alexandra Road. Both developments are under the Mapletree Group, which also owns Harbourfront Centre. “Mapletree has been particularly successful in retaining many of the HarbourFront Centre occupiers within its own portfolio,” observes Dunkerley of Corporate Locations.
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Other buildings in Raffles Place-Downtown that have seen healthy leasing activity include 18 Cross (formerly Cross Street Exchange). PAG acquired the site from Frasers Logistics & Commercial Trust for $810.8 million in 2022. The Hong Kong private equity firm carried out extensive refurbishments on the 15-storey office building with a retail podium, which were completed last year.
Recent tenants that have moved into the building include US investment firm Bridgewater Associates and Flow Digital Infrastructure, an alternative investment company under PAG. Asking rents at the building hover around $12 psf pm.
Corporate Locations’ report also shows a number of firms expanding their existing offices. These include American agricultural sciences company FMC at 18 Cross Street, Singapore automotive fintech firm X Star Technology at Suntec Tower 1, and global IT firm Landi International at The Gateway on Beach Road.
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