80% of Singapore’s tech firms leased office space in CBD

Majority of tech companies in Singapore have taken up space in the central business district (CBD) since the first quarter of 2016, revealed CBRE. The CBD accounted for 80 percent of the net office take-up by such firms, with those operating in the fintech, transport and online payment sectors emerging as the most active in securing and enquiring for space.CBRE noted that the bulk of the leasing activity in recent quarters “has been focussed in the CBD with location continuing to play a key role in attracting and retaining talent”. Over 75 percent of new supply from last year to 2018 are also located in this area.Despite this, decentralised office/business park locations with good amenities and connectivity continued to appeal to the tech industry.This year’s largest leasing deal to date was completed by a US social media company, which snapped up around 300,000 sq ft at Marina One.Another US tech multinational corporation, on the other hand, pre-leased 125,000 sq ft at Frasers Tower while GrabTaxi took up 100,000 sq ft at Marina One. Wirecard moved to a 25,000 sq ft space at Mapletree Business City II.According to CBRE, business parks continue to be a viable option for tech firms.In fact, newer and higher quality developments in Mapletree Business City and One North receive the most interest as these developments fulfil both locational and quality requirements.CBRE’s Office Services executive director Michael Tay, said: “Tech firms will remain a key demand driver, although, in the short term, the pace of growth may slow following the exponential growth seen in the last 24 months.”“Nevertheless, the tightening of supply from 2018/2019 will lead to an escalation of rents. On this backdrop, tech firms continuing on the path of growth will need to make decisions quickly.”Source: CommercialGuru, 11 Dec 2017