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

Amidst this environment, Colliers believes occupiers could benefit from the uncertainty in the market in 1H2024 to discuss their requirements, staying clear of positive rental fee reversions in the years to come.

He expects proprietors to deal with increasing rivalry in the near term as even more source is available in, while new versatile work guidelines might trigger more firms to right-size according to their demands.

In its write up, Colliers outline its priorities for workplace occupants seeking to achieve price financial savings. These include straightening workplace technique to organization objectives, combining space, monetising non-core properties, disposing of or sub-leasing extra room, and buying technology and smart solutions for better space utilisation.

Lentoria floor plan

“Amidst this circumstance, business offices these days, albeit with a lot greater workforce versatility, remain the epicentre of the work culture, with moving decisions being underpinned by skill technique and ESG goals,” observes Mike Davis, managing supervisor of occupier companies for Apac at Colliers.

Regardless, the market remains mixed, claims Bastiaan van Beijsterveldt, Colliers’ managing supervisor for Singapore. While rents in quality properties in good places are standing up, rental expectations have actually lightened for structures with persistent openings and high upcoming second spaces.

Office occupiers around the Asia Pacific (Apac) area are still ready to pay higher rents for premium and amenity-rich areas, according to an April research record by Colliers.

In Singapore, Colliers indicates that a trip to quality and limited pockets of space prompted a rebound in rental fees in 1Q2024. Core CBD premium and Grade-A leas increased 0.7% q-o-q to $11.57 psf monthly after two consecutive quarters of decline.

It also highlights that prioritising sustainability initiatives and pushing employee involvement and fulfillment will even more add to occupiers accomplishing price savings.

This happens in spite of occupiers being much more cost-conscious. Colliers feature that top of mind for Apac business leaders is how to optimise assets and increase savings and drive progress, whilst contending with obstacles like rising cost of living, competitiveness for talent, the requirement to digitalise, and the increasing pressure of climate adjustment.

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