Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Presented the uncertain worldwide setting, Knight Frank expects sentiment to stay careful among office occupiers over the next six to one year. “Therefore, prime rental development for the last quarter of 2025 is expected to continue to be relatively level with some minimal development, with even more of the very same going into the very first half of 2026,” the report states.
Knight Frank’s report found that occupancy status for office spaces in the Raffles Place and Marina Bay precinct remained unchanged at 94.7%, while general CBD tenancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
The higher growth was mainly attributed to the enhancement of IOI Central Blvd Towers to the basket of real estates checked by JLL. Excluding IOI Central Blvd Towers, CBD office rents rose by less than 1%, on balance with the last 6 quarters.
In a separate report, research by Knight Frank suggests prime grade office leas in the Raffles Place and Marina Bay places grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q growth recorded in 2Q2025, and brings overall rental development for the initial nine months of the year to 0.4%.
” Singapore’s workplace market has actually been holding up well, partly sustained by stronger-than-anticipated economic principles and an extra favorable interest rate atmosphere,” says Dr Chua Yang Liang, head of study and consultancy for JLL Southeast Asia.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to top quality space have actually produced a two-tier market where more recent, well-connected buildings grow and older supply faces growing vacancy pressure.”
The minimal readily available supply, paired with a mindful organization setting, resulted in leasing activity being predominantly driven by lease renewals, says Knight Frank. Nonetheless, select occupiers, specifically those with concluding leases, are picking to relocate to more recent, better-quality buildings in tandem with right-sizing or measured growth. Instances of these include tech company Zoom Communications transferring from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading firm Jane Street is intending to expand its area in the latter.
Given the limited office space stock in the following couple of years, he expects quality structures to remain almost fully inhabited as even more firms make flight-to-quality moves from older structures. On the other hand, older and poorly connected structures will face increasing pressures to be redeveloped or modernised.
Rentals for top workplace in Singapore kept on growing in 3Q2025, based on research study from realty consultancies. In its newest quarterly office space industry record, JLL’s research presents that Grade An office rents in the CBD improved 1.3% q-o-q to $11.83 psf monthly (psf pm) previous quarter, the largest quarterly development in six quarters.
Looking forward, JLL anticipates CBD Grade A office rental development to remain modest for the rest of 2025, with full-year growth forecasted to get to about 3%. Entering into 2026, JLL anticipates office rental growth to pick up rate, supported by a tightening up supply pipeline. “As vacancy prices are projected to tighten between 2025-2027, whole-floor and multi-floor prospects will certainly become significantly limited, possibly driving rental prices past some lessees’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
