More office space, soon

Companies looking for more affordable office rental may just see their wish come true.

The Singapore Land Authority (SLA) has released three more state properties into the market for dedicated office use.

These include a former Government building, a former tertiary institution and a community centre.

All three properties will come with a tenancy for an initial term of three years and are renewable for another three years up to 2016.

“In the last couple of months we have received more enquiries from smaller tenants exploring other options, as their landlords decided to increase their rentals,” said Mr Colin Tan, head of research and consultancy at Chesterton International.

He said good market sentiments have led landlords to push their luck when upping rents, knowing that tenants do not have much choice but to pay up.

“The property put up by the government, I’m not sure how popular they will be due to their not so central location, but will definitely release some of the pressure from the lower-end market, giving small tenants real options to call the bluff of landlords,” said Mr Tan.

He added that the soaring office rentals in the Central Business District (CBD) have also led small companies to consider cheaper alternatives such as business parks and factory premises to relocate.

SLA had earlier put up three other properties for tender. The former River Valley Primary School saw four bids submitted by businesses such as property management and hostel operation, which are currently being evaluated.

Source: Today, 03 May 2007

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