Amount of shadow office space up sharply over 2 months, says Colliers

Source : Channel NewsAsia – 10 Jun 2009

Property consultancy Colliers said the amount of shadow space in Singapore has increased by almost half in a short span of two months.

In a research report, the firm said the shadow space increased by 48 per cent from an estimated 250,000 square feet in March this year to 370,000 square feet in May.

The amount of shadow space or excess office space that companies have leased but are looking to sublet is equivalent to 0.5 per cent of the islandwide office stock here.

Financial institutions are the largest contributor of shadow space accounting for 46 per cent of all shadow space currently being marketed.

Amid the global financial crisis and weak business environment, Colliers expects the availability of shadow space to reach a peak in 2010.

An estimated 400,000 to 600,000 square feet of additional shadow space could become available by 2010 from financial institutions alone.

Colliers added that the increased supply of office space will add to the competition for tenants and put more pressure on rents.