Where office rents are concerned, Singapore ranks as the fourth most expensive place in Asia, after Hong Kong, Tokyo and Mumbai. --ST PHOTO: ALAN LIM
PRIME office rents are expected to fall by 30 per cent to as much as 40 per cent by 2010, said property consultancy Cushman & Wakefield.
The fall is due to office stock rising in tough times, a huge office stock inventory resulting from overwhelming optimism from developers back in 2006 and 2007 as well as falling employment growth rate.
The dramatic economic events of last year have produced a tough business environment.
'This has resulted in hesitation to relocate or expand as cost cutting and revenue generation is at the top of every chief executive's agenda,' it said
The consultancy is projecting prime office rents falling from $12 per square foot a month in 2009 to $8 psf in 2010.
The upside is that occupany costs will fall for those corporate tenants renewing or securing leases in the next few quarters, said Cushman.
Where office rents are concerned, Singapore ranks as the fourth most expensive place in Asia, after Hong Kong, Tokyo and Mumbai.
