Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Granted the uncertain international setting, Knight Frank anticipates sentiment to continue to be cautious amongst office occupants over the next 6 to year. “As such, prime rental growth for the last quarter of 2025 is expected to remain rather flat with some low growth, with more of the exact same entering into the initial fifty percent of 2026,” the record states.
Looking ahead, JLL prepares for CBD Grade A office rental growth to remain modest for the rest of 2025, with full-year development forecasted to get to about 3%. Going into 2026, JLL forecasts office rental development to pick up pace, supported by a tightening up supply pipeline. “As vacancy rates are forecasted to tighten up between 2025-2027, whole-floor and multi-floor prospects will certainly come to be significantly limited, potentially driving rental rates beyond some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The limited readily available supply, combined with a mindful service setting, caused leasing event being mostly steered by lease renewals, says Knight Frank. Nevertheless, select occupiers, specifically those with expiring leases, are picking to transfer to newer, better-quality structures in tandem with right-sizing or measured growth. Instances of these consist of tech company Zoom Communications transferring from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading firm Jane Street is planning to expand its space in the latter.
In a separate report, study by Knight Frank suggests prime grade office rents in the Raffles Place and Marina Bay areas expanded 0.3% q-o-q to reach an average of $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings overall rental development for the first nine months of the year to 0.4%.
” Singapore’s office market has actually been holding up well, partially supported by stronger-than-anticipated financial fundamentals and a much more favorable interest rate environment,” mentions Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to top quality space have developed a two-tier market where newer, well-connected buildings thrive and older stock faces expanding vacancy stress.”
Leas for top office space in Singapore continued growing in 3Q2025, based upon research from real estate consultancies. In its newest quarterly office space market report, JLL’s study shows that Grade A workplace rental fees in the CBD improved 1.3% q-o-q to $11.83 psf monthly (psf pm) previous quarter, the largest quarterly growth in 6 quarters.
Given the limited office stock in the next couple of years, he expects quality structures to stay virtually totally occupied as even more firms make flight-to-quality moves from older buildings. On the other hand, older and poorly connected structures will face increasing pressures to be redeveloped or modernised.
Knight Frank’s report found that occupancy status for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while total CBD occupancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
The greater growth was primarily attributed to the addition of IOI Central Boulevard Towers to the basket of properties kept track of by JLL. Removing IOI Central Boulevard Towers, CBD office rents increased by lower than 1%, on par with the previous six quarters.
