Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The higher development was mostly credited to the addition of IOI Central Boulevard Towers to the basket of real properties kept track of by JLL. Excluding IOI Central Blvd Towers, CBD workplace rents climbed by less than 1%, on the same level with the past 6 quarters.
Knight Frank’s report found that tenancy status for office spaces in the Raffles Place and Marina Bay district remained unchanged at 94.7%, whilst overall CBD tenancy raised from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Presented the unclear worldwide setting, Knight Frank expects sentiment to stay cautious amongst workplace occupiers over the next six to one year. “Therefore, prime rental growth for the last quarter of 2025 is anticipated to continue to be relatively level with some limited development, with more of the same going into the initial fifty percent of 2026,” the report states.
Looking ahead, JLL expects CBD Grade A office rental development to remain reasonable for the rest of 2025, with full-year development predicted to reach about 3%. Going into 2026, JLL predicts workplace rental growth to pick up progress, supported by a tightening supply pipeline. “As vacancy prices are projected to tighten up in between 2025-2027, whole-floor and multi-floor options will become significantly restricted, potentially driving rental prices past some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The limited readily available supply, coupled with a mindful service atmosphere, led to leasing event being mainly driven by lease renewals, says Knight Frank. Nonetheless, select tenants, specifically those with expiring leases, are selecting to move to more recent, better-quality buildings in tandem with right-sizing or measured development. Instances of these consist of tech firm Zoom Communications moving from Asia Square Tower to IOI Central Blvd Towers, whilst quantitative trading firm Jane Street is planning to increase its space in the latter.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to high quality space have actually created a two-tier market where newer, well-connected buildings prosper and older supply encounters growing vacancy pressure.”
” Singapore’s office industry has been holding up well, in part supported by stronger-than-anticipated economic principles and an extra conducive interest rate setting,” mentions Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
Leas for top workplace in Singapore kept on expanding in 3Q2025, based upon research study from realty consultancies. In its latest quarterly office space market record, JLL’s study presents that Grade An office rental fees in the CBD raised 1.3% q-o-q to $11.83 psf monthly (psf pm) past quarter, the largest quarterly development in 6 quarters.
In a different record, research study by Knight Frank shows prime grade office leas in the Raffles Place and Marina Bay areas grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings complete rental growth for the very first 9 months of the year to 0.4%.
Given the limited workplace stock in the next couple of years, he expects high quality buildings to continue to be almost completely inhabited as more companies make flight-to-quality moves from older structures. On the other hand, older and poorly attached buildings will certainly face increasing stress to be redeveloped or modernised.
