The vacancy rate in Singapore’s business park market dropped to 12.2% Q3 2021, from 13.1% in Q2 2021.
Singapore’s business park market registered a positive net absorption of 0.57 million sq ft in the third quarter of 2021, while the vacancy rate declined to 12.2% from the 13.1% posted in the previous quarter, reported Singapore Business Review (SBR) citing CBRE.
CBRE attributed this performance to the completion of A-REIT’s build-to-suit facility for Grab Holdings Inc at Media Close.
With companies adopting the hybrid working model, CBRE observed consolidation and downsizing efforts.
Nonetheless, the technology sector and certain firms from the e-commerce, pharmaceutical and gaming industries were seen actively seeking space in the business park market.
The City Fringe submarket witnessed robust demand, causing rents to increase 0.9% quarter-on-quarter to $5.85 per sq ft (psf) per month.
CBRE attributed this to the higher rental expectations on the back of the limited options within this submarket.
Meanwhile, the Rest of Island submarket registered less demand, with rents in this area hovering at $3.65 psf per month.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: email@example.com.