Despite the recession, the newly-opened Straits Trading Building has achieved a 95-per-cent occupancy rate after one-and-a-half years of marketing efforts.
The owner, the Straits Trading Company, is optimistic that the building will be fully-occupied by the middle of this year.
Mr Eric Teng, CEO for property at the Mainboard-listed firm said that last week, the firm sealed a deal to lease an office unit in the building for $8.80 per square foot (psf) and “currently, its asking price is $9 psf”.
The $60 million building, which took about two years to build, was officially opened yesterday by Deputy Prime Minister Teo Chee Hean. The building’s anchor tenant is law firm Rajah and Tann, which occupies 10 floors of the 28-storey building.
Experts say the lease at Raffles Place for Grade A commercial office space is going at about $8 to $9 psf, lower than the $11 psf asked for similar office space at Marina Bay Financial Centre.
Mr Teng believes that apart from the attractive rates in Raffles Place, the area remains attractive as it is more established in terms of accessibility to amenities like the Fullerton Hotel and restaurants in the CBD area.
Source : Today – 5 May 2010