Business & Finance
Business and Finance
Business and Finance
Tue, January 7, 2025 
Why Singapore now has a delicate balance of power amongst office landlords and tenants
- Neither are in a position of dominance, according to analysts. In all the four quarters of 2024, Q4 showed the slowest rental growth with Prime Grade office rents in the Raffles Place / Marina Bay precinct increasing by a mere 0.
The article from MSN discusses the evolving dynamics in Singapore's commercial real estate market, highlighting a shift in the balance of power between office landlords and tenants. Previously, landlords had significant leverage due to high demand and low vacancy rates. However, recent trends show an increase in office space supply, with new developments like IOI Central Boulevard Towers and Keppel South Central adding to the market. This has led to a slight rise in vacancy rates, now at 5.3%, and a softening in rental growth, with prime office rents increasing by only 0.5% in the first quarter of 2024. This situation has empowered tenants, giving them more negotiating power for better lease terms, incentives, and flexibility. Landlords are now compelled to offer competitive deals to attract and retain tenants, indicating a delicate balance where both parties must navigate the market's new realities carefully.
Read the Full MSN Article at:
[ https://www.msn.com/en-xl/money/economy/why-singapore-now-has-a-delicate-balance-of-power-amongst-office-landlords-and-tenants/ar-AA1x48rw ]
Read the Full MSN Article at:
[ https://www.msn.com/en-xl/money/economy/why-singapore-now-has-a-delicate-balance-of-power-amongst-office-landlords-and-tenants/ar-AA1x48rw ]
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