CBD office rents drop

Office rents have started to show signs of falling and analysts say the pipeline of new office space is not going to help.

According to Colliers International, rents in the Central Business District fell by 1.6 per cent on-quarter in the fourth quarter of 2011.

The decline was worse in the Grade A micro market of Raffles Place and New Downtown, where rents fell by 4.3 per cent.

This is the first drop since the fourth quarter of 2009.

Occupancy there also fell for the first time since the third quarter of 2005, to 88 per cent.

Colliers said the increase in office stock has not been met with new occupier demand.

An average of 2.2 million square feet of new space supply is expected to come on stream annually for the next five years.

Source : Channel NewsAsia – 19 Jan 2012

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