Technology, media and telecoms companies are among the largest tenants of office space in Singapore, going by a new CBRE report.
From last year to the third quarter of this year, firms from the tech and media sector took up about 658,000 sq ft of space in the office leasing market, the report said. This made the sector the second-largest contributor in the office lease market since 2005 to date, after the banking and finance sector.
The office space taken up by the sector was mainly in the central business district (CBD) core region, either in the form of new space take-up or relocations.
While the report did not take into account business park space, it noted that the tech and media sector is also a significant contributor to leasing activity in business parks.
Mr Moray Armstrong, managing director for advisory and transactions in Singapore, noted tech sector has continued to be a key contributor to office leasing demand.
"The core CBD and CBD fringe areas have tended to be the preferred locations as tech, media and telco firms have been able to take advantage of attractive leasing deals on offer in the current market," he said.
"By locating offices in the CBD, small to medium-sized tech, media and telco players, in particular, gain competitive edge in attracting and retaining talent.
"These trends are also evidenced in the growing fintech sector where we are seeing healthy leasing demand as Singapore positions itself as the centre for this activity."
The report noted that such deals have been focused on new developments, like Guoco Tower in Tanjong Pagar. Tech firms such as Amadeus, Agoda, Palo Alto, Unity Technologies and OpenLink have all pre-committed to space at Guoco Tower and account for a substantial percentage of the building's overall occupancy.
It added that the addressable market for tech, media and telecoms solutions and services in the Asia-Pacific continues to fuel demand for both office space and skilled headcount, while the growth of Internet users and mobile devices continues to provide diverse opportunities for both global and local tech, media and telecoms firms.
"For many tech, media and telecoms firms operating in Asia-Pacific, favourable demographic factors are driving both robust business performance and serving as a catalyst for aggressive expansion strategies," said Mr Manish Kashyap, regional managing director and head of advisory and transaction services at CBRE Asia-Pacific.
"This backdrop is translating into strong office leasing demand across major gateway cities regionally, such as Beijing, Singapore and Sydney, with increased attention focused on locations and workspaces that foster the collaboration necessary for the tech, media and telco sector."