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Property News26 Apr 2017

CBD rental rebound may prompt some firms to relocate

1

The anticipated recovery in prime office rents in the Central Business District (CBD) next year may prompt some firms to consider relocating to cheaper areas, said consultancy Cushman & Wakefield.

It expects the gap in rents between Grade A offices in the CBD and suburban space to widen to 85 per cent next year and 94 per cent in 2019, up from 75 per cent in the first quarter of this year.

Research director Christine Li noted yesterday that rents for prime CBD offices will be close to bottoming out by the year end. "Once (these) rents return to growth in 2018, we could see decentralisation activities picking up pace."

The Straits Times
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