Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Rentals for top office in Singapore kept on growing in 3Q2025, based upon research study from realty consultancies. In its most current quarterly office space industry record, JLL’s study reveals that Grade An office rental fees in the CBD improved 1.3% q-o-q to $11.83 psf per month (psf pm) last quarter, the biggest quarterly development in 6 quarters.
” Singapore’s workplace industry has actually been standing up well, partially supported by stronger-than-anticipated economic principles and a more favorable interest rate atmosphere,” says Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to quality space have actually created a two-tier market where newer, well-connected buildings prosper and older supply faces growing vacancy pressure.”
Looking ahead, JLL prepares for CBD Grade A office rental development to remain reasonable for the remainder of 2025, with full-year development projected to get to roughly 3%. Entering into 2026, JLL predicts office rental development to pick up rate, sustained by a tightening supply pipeline. “As vacancy prices are forecasted to tighten between 2025-2027, whole-floor and multi-floor opportunities will certainly become progressively limited, possibly driving rental prices beyond some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The limited offered supply, coupled with a cautious organization setting, caused leasing event being primarily steered by lease renewals, claims Knight Frank. Nonetheless, select occupiers, particularly those with ending leases, are choosing to transfer to more recent, better-quality buildings in tandem with right-sizing or measured growth. Instances of these include tech firm Zoom Communications relocating from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is preparing to broaden its area in the latter.
Granted the unsure worldwide atmosphere, Knight Frank expects sentiment to continue to be careful amongst office tenants over the next six to 12 months. “As such, prime rental growth for the last quarter of 2025 is anticipated to continue to be rather level with some marginal growth, with even more of the very same entering into the very first half of 2026,” the report states.
The higher development was primarily attributed to the addition of IOI Central Blvd Towers to the basket of real estates checked by JLL. Removing IOI Central Boulevard Towers, CBD workplace rents rose by lower than 1%, on balance with the previous 6 quarters.
Given the limited office stock in the following couple of years, he expects quality buildings to remain almost totally inhabited as even more companies make flight-to-quality moves from older structures. In contrast, older and poorly connected buildings will certainly face increasing stress to be redeveloped or modernised.
In a different record, research by Knight Frank suggests prime grade office leas in the Raffles Place and Marina Bay spots grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings total rental development for the very first nine months of the year to 0.4%.
Knight Frank’s report found that tenancy status for office spaces in the Raffles Place and Marina Bay precinct stayed unchanged at 94.7%, whilst overall CBD tenancy grown from 93.7% in 2Q2025 to 94.2% in 3Q2025.
