Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Rents for top workplace in Singapore proceeded expanding in 3Q2025, based on study from real estate consultancies. In its most current quarterly office industry record, JLL’s study shows that Grade A workplace leas in the CBD raised 1.3% q-o-q to $11.83 psf each month (psf pm) previous quarter, the largest quarterly development in 6 quarters.
In a separate report, research by Knight Frank shows prime grade office rental fees in the Raffles Place and Marina Bay places grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q growth recorded in 2Q2025, and brings overall rental development for the initial 9 months of the year to 0.4%.
The limited readily available supply, coupled with a cautious organization setting, caused leasing event being primarily steered by lease renewals, claims Knight Frank. However, select occupants, especially those with expiring leases, are picking to transfer to newer, better-quality structures in tandem with right-sizing or measured growth. Instances of these include tech company Zoom Communications transferring from Asia Square Tower to IOI Central Boulevard Towers, while quantitative trading company Jane Street is intending to broaden its area in the latter.
Knight Frank’s record found that tenancy levels for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while total CBD tenancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
The greater development was primarily credited to the enhancement of IOI Central Boulevard Towers to the basket of real properties kept track of by JLL. Removing IOI Central Blvd Towers, CBD office rents climbed by less than 1%, on par with the last 6 quarters.
Given the limited office space stock in the next couple of years, he expects high quality structures to continue to be practically totally inhabited as more firms make flight-to-quality moves from older buildings. In contrast, older and poorly linked buildings will face increasing stress to be redeveloped or modernised.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to high quality space have produced a two-tier market where newer, well-connected buildings thrive and older stock encounters expanding vacancy stress.”
Presented the unsure global setting, Knight Frank anticipates sentiment to stay cautious amongst workplace occupiers over the following six to year. “Thus, prime rental growth for the last quarter of 2025 is anticipated to stay relatively flat with some low development, with more of the same going into the very first half of 2026,” the record states.
Looking forward, JLL prepares for CBD Grade A office rental development to remain modest for the rest of 2025, with full-year development forecasted to get to roughly 3%. Entering into 2026, JLL forecasts workplace rental development to pick up rate, supported by a tightening up supply pipeline. “As vacancy rates are predicted to tighten between 2025-2027, whole-floor and multi-floor prospects will become significantly limited, possibly driving rental prices past some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
” Singapore’s office industry has been standing up well, partly supported by stronger-than-anticipated economic fundamentals and an extra conducive interest rate environment,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
