Apac office occupiers still willing to pay higher rents for quality locations: Colliers
Amid this atmosphere, Colliers believes occupiers might capitalize on the unpredictability on the market in 1H2024 to bargain their demands, staying clear of positive lease reversions in the years to come.
In its article, Colliers chart its top priorities for office space occupants wanting to achieve cost savings. These include aligning workplace approach to organization goals, combining area, monetising non-core properties, disposing of or sub-leasing excess room, and buying technology and smart services for far better area usage.
In Singapore, Colliers mentions that a flight to top quality and limited pockets of room motivated a rally in rental fees in 1Q2024. Core CBD costs and Grade-A leas increased 0.7% q-o-q to $11.57 psf per month after two consecutive quarters of decline.
“Amongst this scenario, offices today, albeit with a lot greater labor force versatility, stay the epicentre of the work society, with moving choices being underpinned by talent technique and ESG goals,” monitors Mike Davis, supervising director of inhabitant companies for Apac at Colliers.
He anticipates landlords to face growing rivalry in the near term as more source comes in, while new manageable work standards may prompt much more companies to right-size according to their needs.
It even emphasize that prioritising sustainability campaigns and driving staff member engagement and complete satisfaction will even more add to inhabitants attaining cost savings.
This happens despite tenants being extra cost-conscious. Colliers emphasize that top of mind for Apac business leaders is how to optimise sources and increase savings and take progress, while contending with obstacles like inflation, competitors for skill, the demand to digitalise, and the increasing pressure of climate development.
Nonetheless, the marketplace remains different, states Bastiaan van Beijsterveldt, Colliers’ managing director for Singapore. While leas in premium facilities in excellent locations are standing up, rental requirements have softened for structures with consistent vacancies and high upcoming secondary spaces.
Office tenants across the Asia Pacific (Apac) region are still able to pay increased rental fees for quality and amenity-rich locations, according to an April study record by Colliers.
