The Office leasing market continues to be very busy with many transactions either completed or at a very advanced negotiation stage. A 30,000 square foot office unit at Asia Square Tower 2 has been leased by Vodafone. At CapitaGreen, a site which was formerly the Market Street Car Park, due for completion by the end of 2014, it is believed that Jardine Lloyd Thompson is close to a lease agreement.The Insurance Broker, Willis (Singapore) has signed a lease agreement on a 20,000 square foot unit at SGX Centre 1 in Shenton Way. Business Times understands that Aon is in advanced negotiations to lease a 70,000 square foot unit.
Office Leasing Momentum increases
Industry observers warn landlords not to get over excited by the current leasing activity into asking ever higher rents because not all lessees are expanding. There are market rumours to the effect that the US oil and the gas company, Chevron is considering its property leasing needs in Singapore in order to reduce expenses, its current lease, around 90,000 square foot, in Chevron House, Raffles House is due to expire in late 2015.
Vodafone’s lease for the whole 17th floor at Asia Tower 2 makes 65% leased of the available 780, 000 square foot of offices in the tower. Luke Moffat Head of leasing at the development said that of the five remaining floors in tower 2, three are the subject of negotiations with three different tenants, who each want an entire floor.
Grade A CBD Office gains popularity
A temporary occupation permit was issued for Asia Square Tower 2 in September 2013. Vodafone are expected to move from their current offices in Straits Trading Building and Suntec City into Asia Tower 2 by the end of 2014. 90% of the 1.26 million square foot of available office space in tower 1, completed in 2011, is let. Business Times understands that the quoted rent for office space in either of Asia Square’s towers is $18 per square foot per month, reputedly one of the highest Grade A CBD office rents around, although tenants for entire floors usually pay between $12 and $13 per square foot.
Agreement is about to be reached for Jardine Lloyd Thompson to occupy 40,000 square foot on one and a half of the lower floors of the 40 storey grade A office space at CapitaGreen. Jardine Lloyd Thompson is moving from various places (One Raffles Quay and Prudential Tower among Others) into the CapitaGreen as well as consolidating its offices on one site, the CapitaGreen site allows the company’s offices to expand. Unattributed reports say that larger space occupiers are paying gross effective monthly rents close to $9.Business Times also understands that Aon, an insurance brokerage and consulting company, is nearing a lease agreement on 70,000 square foot at SGX Centre, formerly occupied by the Singapore Exchange which has moved most of its operations to The Metropolis, Buona Vista. It is believed that Aon will move to SGX Centre 1 from its three current office sites at Mapletree Anson, UOB Plaza 1 and Robinson 77. Reports put Aon’s likely rent at SGX Centre 1 at just under $8 per square foot monthly. Willis (Singapore) agreed earlier to lease two floors in the same tower and is moving from 2 Havelock Road.
A deal is about to be signed for 20,000 square foot for the whole of one of the lower floors in the 34 storey South Beach Tower. Robobank has already leased two entire floors, 26,000 square foot, in the Tower’s high zone. Industry sources believe that gross effective monthly rents for entire floors in South Beach Tower are between $9 and $10.
It is believed that Oracle have signed a lease for 70,000 square foot at Galaxis, an Ascendas Land business park development, at Fusionopolis Phase 5 in one-north, and that the IT company will eventually leave Suntec Tower 4 where it currently leases a similar space and the lease expires in early 2016. Industry sources estimate that Oracle will pay about $5 – $6 per square foot monthly at Galaxis, whereas large space office rents in Suntec City are believed to be around $8.50 per square foot. Oracle will continue to operate from its 20,000 square foot location on another site Technopark@Chai Chee. Business Times recently reported that Canon is leasing 150,000 square foot in the TechnoPark development.