The current office rental Singapore office had increased tremendously. Office rental space in Singapore is currently facing a shortage of supply. It's because several redevelopments or retrofitting of commercial office building. Many buildings in the prime district are redeveloping for residential usage. Our prime influx of oversea companies, especially financial institute, moving into Singapore had also contributed to the office rental in Singapore to soar.
For company looking into expanding their work place in Singapore, getting a suitable space is becoming a challenging task. Some companies decide to go to move towards Hi-tech building or business park zone. Due to the tight way to obtain office rental in Singapore, some companies had also decentralized their operation, moving backend operation from the central business district. You may still find ample offices in the industrial or business park zone.
For many companies, the current office rental had double and even triple when come to renewal of lease. The times of tenants paying low rental and enjoying large space are over. Tenants that don't choose to renew the lease will also need to lower their expectation of the new office that they will be moving to and also at the same time paying higher office rental.
Shophouse office had become a new popular choice for many companies. Shophouse office rental Singapore is usually commanding half of the traditional work place. With meticulous planning and interior design, shophouse office can be renovated to become an office with taste. The popular shophouse offices in Singapore can be found at Amoy Street, Telok Ayer Street and Tras Street. With the high office rental in Singapore, tenants need to have better creativity usage of office space. Open concept office which optimized office space is employed by most tenants.
For some companies, leaving the Central Business District towards the fridge of business zone becomes the main choice. Other medication is moving towards the business park paying lower rental without compromising the organization image. However, they do need to compromise on the location as most business park don't residue in the central of Singapore. The majority of the business park and high tech building can be found either in the east or west side from the island. With this office rental trend, the rental of suburban and business had also increased.
The present office rental in Singapore had already surpassed the 1996/1997 office peak. However, there is still room for upwards movement. It is forecast that it will stabilize in 2 years instances when new offices are ready. This upward trend is a result of the shortage of supply and the continuous strong demand. The demand continues to increase as Singapore economic foundation and powerful infrastructure for doing business are attracting many foreign companies to invest in Singapore.
Although the office rental in Singapore had push up the business cost, there are lots of companies continue to expand in Singapore. This doesn't affect the competitive of Singapore in the Asia region.