While some expect the trend to continue with firms in weaker sectors giving up their central office spaces too, others expect occupancy rates to remain firm with foreign companies setting up new offices here.
However, some experts expect occupancy rates to remain firm, especially with some 200 foreign firms setting up new offices in Singapore over the past two years.Working spaces in Singapore's industrial estates tend to attract smaller firms and younger generation entrepreneurs, such as those in e-commerce and renovations.
“There's a unit directly beside us that’s actually renting out at S$2,900,and there's one on level one asking for S$3,100 to S$3,200 to close the deal,” he said. Mr Lee Sze Teck, senior director and head of research at Huttons Singapore, said that only bigger production companies, such as news companies, have offices in the central business district .
Although rent prices in industrial estates are also rising, they are still expected to remain more affordable than workspaces in the city centre. Over in the CBD, office rents have gone up moderately by 0.9 per cent in the first half of this year.Shadow space refers to excess space on an existing lease obligation that the tenant would like to give up by finding a replacement tenant for the landlord, explained CBRE’s head of research for Singapore and Southeast Asia Tricia Song.
The number of new entities registered here increased by more than 8,000 in the first half of this year, according to the national business registry.
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