Source : Channel NewsAsia - 5 Jan 2009
Office occupancy in Singapore is down in the last quarter of 2008 due to deteriorating global financial situation.
According to real estate adviser DTZ Research, office occupancy islandwide dropped by two percentage points to 95.6 per cent, compared to the same period last year.
This is because of weaker demand as companies shelved expansion plans or relocated to more cost-effective premises.
DTZ said office rentals have also declined. One example is office rentals at Marina Centre which fell by about 7 per cent to S$13.50 per square foot per month, compared to the same period last year.
DTZ said landlords have lowered their asking rents and offering attractive lease incentives to retain existing tenants and entice new ones.
It added that potential office supply from this year to 2013 is now estimated to be at 11.3 million square feet, compared to the earlier estimate of 12.1 million square feet.
With a larger supply of new office space this year, occupancies and rentals are expected to decline further.
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