Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Given the limited workplace stock in the next few years, he anticipates quality buildings to continue to be almost totally inhabited as even more firms make flight-to-quality moves from older structures. On the other hand, older and poorly connected buildings will face increasing pressures to be redeveloped or modernised.
Knight Frank’s record found that tenancy status for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while overall CBD tenancy grown from 93.7% in 2Q2025 to 94.2% in 3Q2025.
The limited available supply, combined with a cautious organization atmosphere, caused leasing activity being predominantly driven by lease renewals, states Knight Frank. Nevertheless, select occupants, specifically those with ending leases, are picking to move to more recent, better-quality structures in tandem with right-sizing or measured growth. Examples of these consist of tech firm Zoom Communications relocating from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is planning to broaden its area in the latter.
The greater development was mostly credited to the addition of IOI Central Blvd Towers to the basket of properties monitored by JLL. Excluding IOI Central Blvd Towers, CBD office rents climbed by less than 1%, on the same level with the past 6 quarters.
In a separate report, research study by Knight Frank shows prime grade office rents in the Raffles Place and Marina Bay areas expanded 0.3% q-o-q to reach an average of $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q growth recorded in 2Q2025, and brings total rental growth for the initial 9 months of the year to 0.4%.
Presented the unclear global atmosphere, Knight Frank expects sentiment to continue to be mindful among office tenants over the following six to year. “As such, prime rental growth for the last quarter of 2025 is expected to remain relatively flat with some low growth, with even more of the very same going into the first half of 2026,” the report states.
Leas for prime office in Singapore continued expanding in 3Q2025, based upon study from real estate consultancies. In its most recent quarterly workplace market report, JLL’s research presents that Grade A workplace rental fees in the CBD raised 1.3% q-o-q to $11.83 psf per month (psf pm) previous quarter, the biggest quarterly growth in 6 quarters.
” Singapore’s office industry has been standing up well, partially sustained by stronger-than-anticipated economic principles and a more helpful interest rate environment,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to top quality space have actually produced a two-tier market where more recent, well-connected buildings flourish and older supply encounters growing vacancy pressure.”
Looking forward, JLL expects CBD Grade A office rental growth to remain modest for the remainder of 2025, with full-year growth projected to reach around 3%. Entering into 2026, JLL anticipates workplace rental growth to pick up progress, assisted by a tightening supply pipeline. “As vacancy rates are predicted to tighten between 2025-2027, whole-floor and multi-floor prospects will turn into increasingly minimal, potentially driving rental prices past some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
