Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The greater growth was mostly attributed to the enhancement of IOI Central Blvd Towers to the basket of real estates monitored by JLL. Removing IOI Central Boulevard Towers, CBD office rents rose by lower than 1%, on the same level with the past six quarters.
In a different report, research study by Knight Frank indicates prime grade office rents in the Raffles Place and Marina Bay areas grew 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 development recorded in 2Q2025, and brings total rental growth for the initial 9 months of the year to 0.4%.
Leas for prime workplace in Singapore proceeded expanding in 3Q2025, based upon study from property consultancies. In its latest quarterly workplace market report, JLL’s research reveals that Grade A workplace 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 six quarters.
Looking forward, JLL prepares for CBD Grade A office rental development to remain modest for the rest of 2025, with full-year development projected to get to about 3%. Going into 2026, JLL anticipates workplace rental development to pick up rate, assisted by a tightening supply pipeline. “As vacancy rates are predicted to tighten up in between 2025-2027, whole-floor and multi-floor options will certainly come to be progressively limited, possibly driving rental rates beyond some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Given the limited office space stock in the following few years, he anticipates high quality structures to continue to be practically fully occupied as more companies make flight-to-quality moves from older structures. In contrast, older and poorly connected buildings will certainly face increasing pressures to be redeveloped or modernised.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, watches that “selective upgrades to top quality space have created a two-tier market where newer, well-connected structures prosper and older stock encounters expanding vacancy pressure.”
Knight Frank’s record found that tenancy levels for office spaces in the Raffles Place and Marina Bay district remained unchanged at 94.7%, while overall CBD occupancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
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The minimal available supply, combined with a careful business setting, led to leasing activity being predominantly steered by lease renewals, says Knight Frank. However, select tenants, particularly those with concluding leases, are picking to transfer to newer, better-quality buildings in tandem with right-sizing or measured development. Instances of these include tech firm Zoom Communications moving from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading company Jane Street is preparing to broaden its area in the latter.
Granted the unsure global atmosphere, Knight Frank anticipates sentiment to remain careful amongst office occupiers over the following six to 12 months. “As such, prime rental development for the last quarter of 2025 is expected to remain relatively flat with some limited growth, with even more of the exact same going into the very first half of 2026,” the record states.
” Singapore’s workplace industry has actually been holding up well, in part maintained by stronger-than-anticipated economic principles and a more favorable interest rate environment,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
