Office spaces outside of CBD to yield higher rents due to growing demand

Ho Bee Investment expects its new office development at One-North in Buona-Vista to yield higher rents than initially projected, due to the growing demand for office space.

Developers are building more office blocks outside of the central areas as robust economic growth pushes up demand for business space.

It now projects that the project may fetch rental rates as high as S$8 per square foot. This compares with rental rates of S$5 that Ho Bee initially estimated in 2010.

The company says the development will comprise two office towers that will be completed in the fourth quarter of 2013. The development is estimated to cost S$820 million.

Mr Chua Thian Poh, chairman and CEO of Ho Bee Investment, said that One-North’s percentage of office supply is very little compared to the office supply in the city, and thus the company does not face competition and can achieve a higher target.

“We are targeting bioceutical, healthcare, IT infocomms, oil, gas, commodity even financial backroom to be located here”, added Mr Chua.

Source : Channel NewsAsia – 8 Mar 2011

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