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Singapore and Hong Kong tenants most satisfied with their offices: Knight Frank

By Tan Chee Yuen

/ Knight Frank, The Edge Property |

August 7, 2015 10:00 AM SGT

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Office tenants in Singapore and Hong Kong have the highest satisfaction level with their office space despite paying the highest rents in Asia Pacific region, according to Knight Frank’s Asia Pacific Office Occupier Survey. The survey involved 277 companies in nine countries — Singapore, Malaysia, Indonesia, Thailand, India, China, Hong Kong, Taiwan and Australia — across Asia Pacific region. 30% of the surveyed companies believe that their current building is a perfect fit for their business.

While rent, image and mass transit are the three most crucial office building attributes to business, local factors may be more important in some countries. In Singapore, rent is the most important consideration while green credentials are the least important when leasing an office space.

Majority or 42% of the firms plan six months ahead before lease expiry and 35% of the firms plan 12 months in advance. Mr Marcus Burtenshaw, Executive Director and Head of Commercial, Knight Frank Thailand, recommends for planning to start at least a year in advance of lease expiry. “This provides more time for market investigations, conduct renewal negotiations and, if necessary, to still provide time to fit-out and relocate to new premises. Bear in mind though that tenants occupying multiple floors or in markets with limited options should start this process even sooner.”

Over the past 12 months, 9% of the respondents disposed of surplus space while 38% of them acquired additional space. The remaining 53% kept the amount of space unchanged.

Moving forward, 60% of the respondents expect their headcount to grow over the next 12 months. Mr Ross Criddle, Head of Global Corporate Services, Knight Frank Asia Pacific, says, “Our findings also support the principle that Asia Pacific continues to be a growth market, with over 60% of respondents foreseeing that their headcount will grow over the next 12 months – a positive sign for the region.”

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