Decentralised office rents fall as firms relocate to CBD: JLL
As relocations proceed to sustain need, office leas in the CBD are anticipated to remain moderate, with JLL forecasting full-year development of 2% this year. However, rental fees might pick up in 2025, in the middle of restricted supply. “No significant office conclusions are anticipated for the following 12 months, with the new Shaw Tower only coming onstream in 2H2026,” notes Chua.
Andrew Tangye, head of workplace leasing and advisory at JLL Singapore, says an expanding trend of “strategic recentralisation” and “quality-driven relocations” to workplaces in the CBD. “Many businesses in Singapore are developing toward higher-value services and improved company models, causing a movement of some office need from decentralised locations to CBD properties that much better fit their significantly sophisticated and client-oriented procedures,” he adds.
On the other hand, Tangye believes property owners with vacant area are concentrating on enhancing occupancy and securing profiles ahead of 2026, when rents may start rising once more prior to new supply gets in the market in 2028. He includes: “By executing targeted property enhancements, consisting of modernised entrance halls and restrooms, in addition to the repair and restoration of outdated office areas, homeowner are positioning themselves to bring in premium lessees and capitalise on the expected rental growth opportunities.”
One instance is Audi Singapore, that most recently moved its offices from Aperia on Kallang Avenue to Resources Square in the CBD. The shift coincided with the display room’s change from Alexandra Road to 18 Cross Street, just a short walk from Capital Square, claims Tangye.
On the other hand, office rental fees in the decentralised sub-market reported a downtrend in 2Q2025, its very first fall in 4 years. Leas in the market fell 0.8% q-o-q to $7.61 psf per month last quarter. “This decline is attributed to ongoing rightsizing efforts and renters moving to, or closer to, the CBD, motivated by the increased opportunity of space,” JLL adds.
The redevelopment of 79 Anson Road, which might start following year, is expected to compound supply restraints additionally, he adds.
Regardless of ongoing economic and geopolitical unpredictabilities, CBD office rentals edged up again in 2Q2025. Grade A gross effective rents increased 0.7% q-o-q to $11.69 psf per month, observing a 5th straight quarter of sub-1% growth, according to JLL.
More firms might be urged to move to the CBD as a result of “the current lack of a considerable rental fee space between CBD and decentralised workplaces”, states Dr Chua Yang Liang, JLL’s head of study and consultancy for Southeast Asia. Currently, the average lease gap between investment-grade offices in the CBD and the decentralised sub-market stands at around 30% to 35%, that Chua claims is lesser the historical 50% to 60% rank.
