Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Granted the unsure international atmosphere, Knight Frank anticipates sentiment to continue to be mindful amongst workplace occupiers over the next 6 to 12 months. “Therefore, prime rental development for the last quarter of 2025 is anticipated to remain rather level with some limited development, with even more of the very same entering into the very first fifty percent of 2026,” the record states.
In a separate report, research study by Knight Frank indicates prime grade office rents in the Raffles Place and Marina Bay places grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings complete rental growth for the very first nine months of the year to 0.4%.
Knight Frank’s report found that tenancy status 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.
Looking forward, JLL prepares for CBD Grade A office rental development to remain reasonable for the rest of 2025, with full-year growth forecasted to reach around 3%. Entering into 2026, JLL predicts office rental growth to pick up rate, assisted by a tightening supply pipeline. “As vacancy prices are forecasted to tighten up in between 2025-2027, whole-floor and multi-floor options will come to be progressively limited, potentially driving rental prices past some lessees’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Given the limited office stock in the following few years, he expects high quality structures to stay practically fully inhabited as more companies make flight-to-quality moves from older structures. In contrast, older and poorly attached structures will certainly face increasing pressures to be redeveloped or modernised.
Rentals for prime office space in Singapore kept on expanding in 3Q2025, based on research from real estate consultancies. In its latest quarterly office space market record, JLL’s research study reveals that Grade A workplace rental fees in the CBD raised 1.3% q-o-q to $11.83 psf each month (psf pm) past quarter, the largest quarterly growth in 6 quarters.
The minimal offered supply, combined with a cautious company setting, led to leasing event being primarily steered by lease renewals, states Knight Frank. Nevertheless, select occupants, especially those with ending leases, are picking to relocate to newer, better-quality structures in tandem with right-sizing or measured expansion. Instances of these include tech company Zoom Communications transferring from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading company Jane Street is planning to increase its space in the latter.
The greater development was mainly credited to the addition of IOI Central Blvd Towers to the basket of properties kept track of by JLL. Removing IOI Central Boulevard Towers, CBD workplace rents increased by lower than 1%, on par with the previous six quarters.
Calvin Yeo, head of occupant strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to quality space have actually produced a two-tier market where newer, well-connected buildings thrive and older supply faces expanding vacancy stress.”
” Singapore’s office industry has actually been standing up well, partially sustained by stronger-than-anticipated financial basics and an extra favorable interest rate atmosphere,” mentions Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
