Apac office occupiers still willing to pay higher rents for quality locations: Colliers

In Singapore, Colliers mentions that a flight to top quality and restricted pockets of room triggered a rebound in leas in 1Q2024. Core CBD costs and Grade-A rents climbed 0.7% q-o-q to $11.57 psf per month after two consecutive quarters of downtrend.

In its report, Colliers chart its priorities for workplace occupants wanting to accomplish cost financial savings. These consist of aligning office space strategy to company objectives, consolidating area, monetising non-core properties, disposing of or sub-leasing unwanted space, and buying technology and good services for better place usage.

It even highlights that prioritising durability efforts and steering worker involvement and satisfaction will certainly even more contribute to occupiers achieving cost financial savings.

“Amidst this scenario, business offices today, albeit with much greater workforce adaptability, stay the epicentre of the work society, with relocation choices being underpinned by talent technique and ESG objectives,” observes Mike Davis, managing supervisor of inhabitant companies for Apac at Colliers.

Amid this atmosphere, Colliers believes occupiers can make the most of the uncertainty in the market in 1H2024 to bargain their demands, preventing positive lease reversions in the future.

He prepares for property managers to deal with enhancing competition in the near term as even more source can be found in, while new manageable job guidelines may prompt extra firms to right-size according to their requirements.

Lentor Mansion Guocoland

Office tenants throughout the Asia Pacific (Apac) region are still ready to pay much higher rents for quality and amenity-rich areas, according to an April research report by Colliers.

Nevertheless, the marketplace remains different, claims Bastiaan van Beijsterveldt, Colliers’ regulating supervisor for Singapore. While rents in quality structures in excellent areas are holding up, rental assumptions have actually relaxed for buildings with persistent vacancies and high upcoming secondary spaces.

This happens regardless of tenants being a lot more cost-conscious. Colliers feature that top of mind for Apac business leaders is how to optimise assets and maximise savings and drive development, while emulating obstacles like rising cost of living, competitors for skill, the requirement to digitalise, and the climbing stress of environment shift.

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