Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The higher development was largely attributed to the enhancement of IOI Central Boulevard Towers to the basket of properties checked by JLL. Excluding IOI Central Blvd Towers, CBD workplace rents increased by less than 1%, on par with the past 6 quarters.
The restricted offered supply, combined with a careful company atmosphere, resulted in leasing activity being primarily steered by lease renewals, states Knight Frank. Nevertheless, select occupiers, particularly those with concluding leases, are selecting to move to more recent, better-quality buildings in tandem with right-sizing or measured growth. Examples of these consist of tech business Zoom Communications relocating from Asia Square Tower to IOI Central Boulevard Towers, while quantitative trading firm Jane Street is intending to increase its area in the latter.
Looking ahead, JLL anticipates CBD Grade A office rental development to remain reasonable for the rest of 2025, with full-year development projected to get to roughly 3%. Entering into 2026, JLL predicts office rental development to pick up rate, supported by a tightening supply pipeline. “As vacancy prices are projected to tighten up in between 2025-2027, whole-floor and multi-floor prospects will become progressively restricted, possibly driving rental rates past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Presented the unsure global setting, Knight Frank expects sentiment to stay cautious among workplace occupants over the following 6 to year. “As such, prime rental development for the last quarter of 2025 is anticipated to remain rather level with some limited growth, with even more of the same going into the very first fifty percent of 2026,” the report states.
Rents for prime office space in Singapore proceeded growing in 3Q2025, based upon research study from property consultancies. In its most recent quarterly office market report, JLL’s study reveals that Grade An office rents in the CBD raised 1.3% q-o-q to $11.83 psf per month (psf pm) past quarter, the largest quarterly development in 6 quarters.
” Singapore’s office market has actually been holding up well, partly sustained by stronger-than-anticipated financial basics and a more helpful interest rate environment,” mentions Dr Chua Yang Liang, head of study and consultancy for JLL Southeast Asia.
In a separate report, research study by Knight Frank shows prime grade office rents in the Raffles Place and Marina Bay areas grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q growth recorded in 2Q2025, and brings overall rental development for the very first nine months of the year to 0.4%.
Knight Frank’s record found that occupancy status for office spaces in the Raffles Place and Marina Bay precinct remained unchanged at 94.7%, whilst overall CBD tenancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Given the limited office stock in the following few years, he anticipates quality structures to remain almost completely occupied as more firms make flight-to-quality moves from older buildings. In contrast, older and poorly connected buildings will certainly face increasing stress to be redeveloped or modernised.
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, watches that “selective upgrades to top quality space have created a two-tier market where more recent, well-connected buildings flourish and older supply faces growing vacancy stress.”
