Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
In a separate report, research by Knight Frank suggests prime grade office leas in the Raffles Place and Marina Bay areas 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 9 months of the year to 0.4%.
Rents for top workplace in Singapore kept on growing in 3Q2025, based upon research from property consultancies. In its most current quarterly office industry report, JLL’s research presents 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 largest quarterly growth in 6 quarters.
” Singapore’s workplace industry has been standing up well, partly maintained by stronger-than-anticipated economic principles and an extra helpful interest rate environment,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
The minimal readily available supply, paired with a careful service setting, brought about leasing activity being mainly driven by lease renewals, states Knight Frank. Nevertheless, select occupiers, particularly those with ending leases, are choosing to transfer to newer, better-quality structures in tandem with right-sizing or measured development. Instances of these include tech business Zoom Communications relocating from Asia Square Tower to IOI Central Blvd Towers, whilst quantitative trading firm Jane Street is planning to increase its area in the latter.
The greater development was mostly credited to the addition of IOI Central Boulevard Towers to the basket of real estates monitored by JLL. Excluding IOI Central Blvd Towers, CBD workplace rents increased by lower than 1%, on par with the last 6 quarters.
Looking forward, JLL expects CBD Grade A office rental development to remain reasonable for the remainder of 2025, with full-year growth projected to reach around 3%. Going into 2026, JLL anticipates office rental growth to pick up pace, assisted by a tightening supply pipeline. “As vacancy prices are forecasted to tighten between 2025-2027, whole-floor and multi-floor opportunities will certainly become increasingly limited, potentially driving rental prices past some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Given the limited office space stock in the next couple of years, he anticipates quality buildings to continue to be practically fully occupied as even more companies make flight-to-quality moves from older buildings. On the other hand, older and poorly connected structures will face increasing stress to be redeveloped or modernised.
Knight Frank’s report found that occupancy levels for office spaces in the Raffles Place and Marina Bay precinct remained unchanged at 94.7%, while general CBD tenancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Granted the unpredictable worldwide atmosphere, Knight Frank anticipates sentiment to continue to be mindful among workplace occupants over the next six to one year. “Because of this, prime rental growth for the last quarter of 2025 is expected to continue to be fairly level with some minimal growth, with more of the same going into the first fifty percent of 2026,” the record states.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to quality space have actually created a two-tier market where newer, well-connected structures flourish and older supply encounters growing vacancy pressure.”
