Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Rentals for top office space in Singapore proceeded expanding in 3Q2025, based on study from real estate consultancies. In its latest quarterly office space market record, JLL’s research study shows that Grade A workplace rents in the CBD increased 1.3% q-o-q to $11.83 psf each month (psf pm) last quarter, the biggest quarterly growth in 6 quarters.
In a different record, study by Knight Frank suggests prime grade office leas in the Raffles Place and Marina Bay areas grew 0.3% q-o-q to hit 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 development for the first 9 months of the year to 0.4%.
The greater development was mainly attributed to the enhancement of IOI Central Blvd Towers to the basket of real properties kept track of by JLL. Removing IOI Central Blvd Towers, CBD workplace rents climbed by lower than 1%, on the same level with the previous six quarters.
Given the limited workplace stock in the next few years, he anticipates high quality structures to remain almost fully inhabited as even more firms make flight-to-quality moves from older buildings. In contrast, older and poorly connected structures will face increasing pressures to be redeveloped or modernised.
Knight Frank’s report found that occupancy status for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while general CBD occupancy grown from 93.7% in 2Q2025 to 94.2% in 3Q2025.
The limited readily available supply, paired with a cautious service setting, brought about leasing event being primarily driven by lease renewals, claims Knight Frank. Nonetheless, select tenants, specifically those with expiring leases, are choosing to move to more recent, better-quality buildings in tandem with right-sizing or measured growth. Instances of these consist of tech business Zoom Communications moving from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is planning to broaden its area in the latter.
Looking forward, JLL prepares for CBD Grade A office rental development to remain modest for the remainder of 2025, with full-year growth predicted to get to roughly 3%. Going into 2026, JLL forecasts workplace rental development to pick up pace, sustained by a tightening supply pipeline. “As vacancy rates are predicted to tighten in between 2025-2027, whole-floor and multi-floor prospects will certainly become increasingly limited, potentially driving rental rates past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to top quality space have actually developed a two-tier market where more recent, well-connected buildings grow and older supply encounters expanding vacancy stress.”
Presented the uncertain worldwide atmosphere, Knight Frank anticipates sentiment to continue to be cautious among workplace occupiers over the next 6 to one year. “Thus, prime rental growth for the last quarter of 2025 is expected to remain relatively flat with some marginal growth, with more of the same entering into the initial half of 2026,” the record states.
” Singapore’s office industry has actually been holding up well, in part maintained by stronger-than-anticipated economic fundamentals and a much more helpful interest rate atmosphere,” says Dr Chua Yang Liang, head of study and consultancy for JLL Southeast Asia.
