Rents in CBD could slip 0.4%.
According to Knight Frank, leasing activity in the next 6 months is expected to slow. Enquiries for office space will continue to be dominated by smaller requirements of 1,000 sq ft to 5,000 sq ft.
In catering to space requirements of users, there is a possibility that landlords of buildings with larger floor plates could subdivide the floor into several smaller units in order to lease out spaces.
Prime rents in the Central Business District could potentially decrease by 0.5 per cent q-o-q in 1Q 2013.
Here's more from Knight Frank:
Office leasing in 2012 has seen a drop in rents from 2011. Burdened by repercussions from the euro-zone debt crisis, multi-national corporations (MNCs) have been cautious in their expenditure and expansions.
2012 was essentially a tenant dominated market in the office leasing sector. The surge of new office supply concentrated around the Marina Bay area in
2011 saw landlords pushing to fill up spaces amidst the tight demand market in 2012.
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