Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The higher development was mainly credited to the addition of IOI Central Boulevard Towers to the basket of real estates kept track of by JLL. Excluding IOI Central Boulevard Towers, CBD workplace rents rose by less than 1%, on par with the past six quarters.
Rentals for prime office space in Singapore continued growing in 3Q2025, based upon research from property consultancies. In its latest quarterly office industry record, JLL’s research presents that Grade An office rental fees in the CBD raised 1.3% q-o-q to $11.83 psf per month (psf pm) previous quarter, the biggest quarterly development in six quarters.
Looking forward, JLL anticipates CBD Grade A office rental development to remain reasonable for the remainder of 2025, with full-year development predicted to reach around 3%. Entering into 2026, JLL predicts workplace rental development to pick up rate, supported by a tightening supply pipeline. “As vacancy prices are forecasted to tighten between 2025-2027, whole-floor and multi-floor prospects will turn into progressively restricted, possibly driving rental rates past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Canberra Crescent Residences Singapore
The minimal readily available supply, coupled with a mindful company setting, brought about leasing event being primarily steered by lease renewals, claims Knight Frank. Nonetheless, select occupants, especially those with ending leases, are choosing to move to more recent, better-quality buildings in tandem with right-sizing or measured expansion. Examples of these include tech business Zoom Communications transferring from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading company Jane Street is intending to expand its area in the latter.
Knight Frank’s record found that occupancy status for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while general CBD tenancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Given the limited workplace stock in the next couple of years, he expects high quality structures to remain virtually completely occupied as more companies make flight-to-quality moves from older structures. On the other hand, older and poorly attached structures will certainly face increasing pressures to be redeveloped or modernised.
Granted the unpredictable international setting, Knight Frank expects sentiment to continue to be cautious among workplace occupants over the following 6 to year. “Thus, prime rental development for the last quarter of 2025 is anticipated to continue to be relatively level with some limited growth, with even more of the exact same going into the initial half of 2026,” the report states.
” Singapore’s office industry has been standing up well, partly maintained by stronger-than-anticipated economic fundamentals and a much more favorable interest rate setting,” says Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
In a different record, research study by Knight Frank indicates 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 overall rental development for the very first nine months of the year to 0.4%.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to top quality space have actually developed a two-tier market where more recent, well-connected buildings prosper and older supply faces growing vacancy stress.”
