Vacancy of Grade A office space drops to 0.4% in Q1

More companies are taking up Grade A office space in Singapore.The vacancy of such office space dropped further to 0.4 percent the first quarter from 0.8 percent in the previous quarter.

A report by CB Richard Ellis (CBRE) showed supply remaining extremely tight in the core central business district as well as in the fringe and decentralised areas.

These areas saw vacancies of under five percent.

The exception was the Tanjong Pagar and Paya Lebar micro-markets, where vacancy was still below 10 percent.

CBRE added that the completion of the SIF Building with a supply of 68,000 square feet provided little respite to the tight availability situation.

It expects business parks to gain from higher levels of interest.

CBRE also said landlords in the CBD would have to get used to the very real prospect that they would lose tenants.

It estimates capital value for prime offices at S$1,800 per square foot in the first quarter.

This is an increase of 20 percent on quarter and 71 percent on-year.

Prime office yields were at 4.6 percent, down from 4.9 percent in the previous quarter.

Source: Channel NewsAsia, 03 April 2007

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