Apac office occupiers still willing to pay higher rents for quality locations: Colliers

This comes despite occupiers being more cost-conscious. Colliers highlights that top of mind for Apac business leaders is how to optimise sources and maximise financial savings and take growth, while contending with obstacles like inflation, competition for talent, the need to digitalise, and the rising stress of environment adjustment.

It even emphasize that prioritising sustainability campaigns and pushing worker involvement and complete satisfaction will further add to inhabitants attaining expense savings.

In Singapore, Colliers indicates that a flight to top quality and minimal pockets of room motivated a rebound in rents in 1Q2024. Core CBD costs and Grade-A rents increased 0.7% q-o-q to $11.57 psf each month after 2 sequent quarters of downtrend.

Amid this setting, Colliers believes occupiers can benefit from the unpredictability out there in 1H2024 to negotiate their requirements, avoiding favorable rent reversions in the coming future.

In its article, Colliers maps its top priorities for office tenants looking to accomplish cost savings. These include aligning office space strategy to service goals, combining area, monetising non-core assets, disposing or sub-leasing excess space, and purchasing technological innovation and effective solutions for better space utilisation.

“Amid this scenario, offices nowadays, albeit with a lot higher workforce flexibility, stay the epicentre of the work society, with relocation options being underpinned by talent technique and ESG goals,” monitors Mike Davis, handling director of tenant companies for Apac at Colliers.

He anticipates proprietors to encounter increasing competitors in the near term as even more supply comes in, while new flexible job standards might urge a lot more firms to right-size according to their requirements.

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Regardless, the marketplace continues to be different, says Bastiaan van Beijsterveldt, Colliers’ handling supervisor for Singapore. While rental fees in quality facilities in good places are standing up, rental expectations have relaxed for structures with consistent jobs and high upcoming additional areas.

Office residents around the Asia Pacific (Apac) region are still willing to pay higher leas for premium and amenity-rich areas, according to an April research study file by Colliers.


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