Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Given the limited workplace stock in the next couple of years, he anticipates high quality structures to stay almost totally occupied as even more companies make flight-to-quality moves from older structures. In contrast, older and poorly connected buildings will face increasing pressures to be redeveloped or modernised.
Knight Frank’s report found that tenancy levels for office spaces in the Raffles Place and Marina Bay district remained unchanged at 94.7%, while overall CBD tenancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Leas for top workplace in Singapore continued growing in 3Q2025, based on research from real estate consultancies. In its latest quarterly office market report, JLL’s research presents that Grade An office leas in the CBD improved 1.3% q-o-q to $11.83 psf each month (psf pm) last quarter, the largest quarterly growth in 6 quarters.
In a different report, research by Knight Frank shows prime grade office rental fees in the Raffles Place and Marina Bay spots expanded 0.3% q-o-q to reach approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings overall rental development for the very first 9 months of the year to 0.4%.
Looking ahead, JLL anticipates CBD Grade A office rental development to remain modest for the rest of 2025, with full-year growth projected to reach approximately 3%. Going into 2026, JLL predicts office rental development to pick up pace, assisted by a tightening supply pipeline. “As vacancy prices are projected to tighten up in between 2025-2027, whole-floor and multi-floor prospects will certainly turn into progressively limited, potentially driving rental prices past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The greater development was mostly credited to the enhancement of IOI Central Boulevard Towers to the basket of real estates checked by JLL. Removing IOI Central Boulevard Towers, CBD office rents rose by less than 1%, on the same level with the past 6 quarters.
Given the uncertain international environment, Knight Frank anticipates sentiment to continue to be cautious amongst office occupiers over the following 6 to year. “As such, prime rental growth for the last quarter of 2025 is anticipated to remain relatively flat with some low growth, with more of the exact same entering into the very first half of 2026,” the report states.
The minimal offered supply, combined with a mindful company atmosphere, brought about leasing activity being mainly driven by lease renewals, claims Knight Frank. Nonetheless, select tenants, especially those with ending leases, are picking to move to more recent, better-quality structures in tandem with right-sizing or measured growth. Examples of these consist of tech company Zoom Communications moving from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is preparing to expand its space in the latter.
” Singapore’s office space market has actually been holding up well, partly upheld by stronger-than-anticipated financial principles and an extra favorable interest rate environment,” mentions Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to top quality space have actually created a two-tier market where newer, well-connected buildings thrive and older supply encounters growing vacancy pressure.”
