Decentralised office rents fall as firms relocate to CBD: JLL
Andrew Tangye, head of workplace leasing and advisory at JLL Singapore, says an expanding trend of “strategic recentralisation” and “quality-driven moves” to offices in the CBD. “Many services in Singapore are progressing towards higher-value services and improved service models, causing a migration of some office need from decentralised places to CBD premises that better suit their significantly sophisticated and client-oriented procedures,” he adds.
In spite of continuous economic and geopolitical uncertainties, CBD office rents edged up again in 2Q2025. Grade A gross effective leas rose 0.7% q-o-q to $11.69 psf monthly, noting a 5th straight quarter of sub-1% growth, according to JLL.
The redevelopment of 79 Anson Road, which could begin next year, is anticipated to worsen supply restrictions additionally, he adds.
One example is Audi Singapore, that most recently moved its business offices from Aperia on Kallang Avenue to Capital Square in the CBD. The move accompanied the display room’s change from Alexandra Road to 18 Cross Street, simply a brief walk from Capital Square, says Tangye.
A lot more business may be forced to transfer to the CBD because of “the present absence of a significant rent gap in between CBD and decentralised workplaces”, says Dr Chua Yang Liang, JLL’s head of study and consultancy for Southeast Asia. Currently, the average rental fee void in between investment-grade offices in the CBD and the decentralised sub-market stands at around 30% to 35%, which Chua states is below the historic 50% to 60% rank.
As relocations continue to sustain need, workplace rents in the CBD are expected to stay modest, with JLL anticipating full-year development of 2% this year. Nevertheless, rental fees may pick up in 2025, in the middle of limited supply. “No significant office conclusions are anticipated for the following 12 months, with the brand-new Shaw Tower only happening onstream in 2H2026,” notes Chua.
At the same time, Tangye thinks property owners with uninhabited area are concentrating on boosting occupancy and stabilising portfolios ahead of 2026, when rents may begin rising once again before brand-new supply enters the market in 2028. He includes: “By implementing targeted property enhancements, consisting of modernised lobbies and restrooms, in addition to the repair and improvement of outdated office locations, property owners are placing themselves to attract costs renters and capitalise on the expected rental development possibilities.”
On the other hand, workplace leas in the decentralised sub-market reported a downturn in 2Q2025, its very first fall in four years. Rents in the market fell 0.8% q-o-q to $7.61 psf monthly last quarter. “This decrease is attributed to continuous rightsizing efforts and occupants relocating to, or closer to, the CBD, motivated by the increased availability of space,” JLL includes.
