Source : Straits Times - 5 Sep 2008
THE cautious mood in the property market has not prevented Capitacommercial Trust (CCT) from striking attractive lease deals at the prime Capital Tower and One George Street buildings.
JPMorgan Chase & Co and BHP Billiton both renewed their leases at Capital Tower, while South Korean bank Shinhan Bank is taking up space at One George Street.
The total space signed up - either on renewed leases or new deals - is about 77,900 sq ft. Both buildings are now at near 100 per cent occupancy.
A CCT spokesman said: ‘Given the Grade A quality of Capital Tower and One George Street, the newly committed rents are in line with rates achieved at comparable buildings of between $16 and $20 per square foot per month.’
This is despite the current weak macroeconomic sentiments.
Ms Lynette Leong, chief executive of CCT’s manager, said: ‘Singapore, a global city with affordability of lifestyle for expatriates, attracts firms looking to expand in this part of the world.’
Rents at Capital Tower in Robinson Road, near Tanjong Pagar MRT Station, are hovering at around $15 to $16 psf, according to Mr Donald Han, managing director of Cushman & Wakefield.
One George Street, a relatively new building near Raffles Place, commands rent of $18 to $19 psf, he said.
With demand and occupancy still fairly strong for prime office buildings, landlords are not panicking despite the economic slowdown, said Mr Han.
But landlords with new space to let may take a little longer to find tenants as a lot of financial institutions have already gone through their expansion process, he added.
Meanwhile, CCT also announced that it has offered to lease a 1,313 sq ft ninth-floor unit in Capital Tower to CapitaLand for three years for a total rent of $449,126.
CapitaLand has an indirect interest of 31 per cent in CCT.
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