Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Knight Frank’s report found that tenancy status for office spaces in the Raffles Place and Marina Bay precinct remained unchanged at 94.7%, whilst general CBD tenancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
In a separate record, research by Knight Frank shows prime grade office leas in the Raffles Place and Marina Bay places grew 0.3% q-o-q to reach an average of $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings total rental growth for the very first 9 months of the year to 0.4%.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to high quality space have actually created a two-tier market where more recent, well-connected buildings grow and older stock faces expanding vacancy pressure.”
Given the limited office space stock in the following couple of years, he anticipates high quality structures to continue to be practically fully occupied as more firms make flight-to-quality moves from older buildings. On the other hand, older and poorly attached buildings will face increasing pressures to be redeveloped or modernised.
” Singapore’s office space market has been standing up well, in part supported by stronger-than-anticipated financial basics and an extra favorable interest rate environment,” mentions Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
Looking forward, JLL anticipates CBD Grade A office rental growth to remain modest for the rest of 2025, with full-year growth predicted to get to around 3%. Entering into 2026, JLL forecasts workplace rental growth to pick up speed, supported by a tightening supply pipeline. “As vacancy rates are predicted to tighten in between 2025-2027, whole-floor and multi-floor prospects will become increasingly limited, potentially driving rental prices past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The restricted offered supply, combined with a mindful business environment, brought about leasing activity being predominantly steered by lease renewals, states Knight Frank. However, select occupiers, specifically those with expiring leases, are choosing to relocate to more recent, better-quality structures in tandem with right-sizing or measured development. Instances of these include tech business Zoom Communications transferring from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading firm Jane Street is planning to expand its area in the latter.
Springleaf Residence Singapore
Rents for top office space in Singapore proceeded expanding in 3Q2025, based on research study from realty consultancies. In its most current quarterly workplace market report, JLL’s research study reveals that Grade A workplace leas in the CBD improved 1.3% q-o-q to $11.83 psf each month (psf pm) previous quarter, the biggest quarterly growth in six quarters.
Granted the unclear international environment, Knight Frank anticipates sentiment to stay mindful amongst workplace occupiers over the next six to 12 months. “As such, prime rental development for the last quarter of 2025 is anticipated to remain rather level with some limited development, with more of the same entering into the first half of 2026,” the report states.
The greater development was largely attributed to the addition of IOI Central Boulevard Towers to the basket of real properties kept track of by JLL. Excluding IOI Central Blvd Towers, CBD workplace rents increased by less than 1%, on balance with the previous six quarters.
