Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Looking forward, JLL expects CBD Grade A office rental development to remain modest for the rest of 2025, with full-year growth projected to reach about 3%. Going into 2026, JLL predicts workplace rental development to pick up speed, sustained by a tightening supply pipeline. “As vacancy prices are forecasted to tighten in between 2025-2027, whole-floor and multi-floor options will certainly come to be significantly restricted, potentially driving rental rates beyond some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
In a different report, research study by Knight Frank suggests prime grade office leas in the Raffles Place and Marina Bay places expanded 0.3% q-o-q to hit an average of $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q development recorded in 2Q2025, and brings overall rental growth for the first nine months of the year to 0.4%.
The limited readily available supply, paired with a mindful service atmosphere, brought about leasing activity being mainly steered by lease renewals, states Knight Frank. Nonetheless, select occupiers, specifically those with expiring leases, are picking to transfer to more recent, better-quality buildings in tandem with right-sizing or measured growth. Instances of these include tech company Zoom Communications moving from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is planning to increase its area in the latter.
Given the limited office stock in the next few years, he expects quality structures to stay nearly completely inhabited as even more companies make flight-to-quality moves from older structures. On the other hand, older and poorly linked structures will face increasing pressures to be redeveloped or modernised.
Knight Frank’s record found that tenancy status for office spaces in the Raffles Place and Marina Bay district stayed unchanged at 94.7%, whilst total CBD occupancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
” Singapore’s office space industry has actually been standing up well, partly maintained by stronger-than-anticipated financial basics and an extra favorable interest rate environment,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
Given the unclear international setting, Knight Frank anticipates sentiment to continue to be careful amongst workplace tenants over the next 6 to 12 months. “Thus, prime rental growth for the last quarter of 2025 is anticipated to stay relatively level with some low development, with even more of the exact same going into the initial fifty percent of 2026,” the report states.
The greater growth was mainly attributed to the addition of IOI Central Blvd Towers to the basket of properties kept track of by JLL. Excluding IOI Central Blvd Towers, CBD office rents climbed by lower than 1%, on the same level with the last 6 quarters.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to top quality space have actually produced a two-tier market where more recent, well-connected structures thrive and older stock encounters growing vacancy pressure.”
Rents for prime office space in Singapore continued growing in 3Q2025, based on research from real estate consultancies. In its newest quarterly office market report, JLL’s research study reveals that Grade An office rents in the CBD improved 1.3% q-o-q to $11.83 psf monthly (psf pm) last quarter, the biggest quarterly development in 6 quarters.
