Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Knight Frank’s record found that tenancy levels for office spaces in the Raffles Place and Marina Bay district stayed unchanged at 94.7%, whilst overall CBD occupancy grown from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Given the limited office stock in the next few years, he expects quality buildings to stay practically fully inhabited as more companies make flight-to-quality moves from older buildings. In contrast, older and poorly connected structures will certainly face increasing pressures to be redeveloped or modernised.
Granted the uncertain worldwide environment, Knight Frank anticipates sentiment to continue to be mindful amongst workplace occupants over the next 6 to 12 months. “As such, prime rental development for the last quarter of 2025 is expected to stay fairly level with some minimal growth, with more of the very same entering into the initial half of 2026,” the record states.
Looking ahead, JLL expects CBD Grade A office rental growth to remain modest for the remainder of 2025, with full-year growth predicted to get to roughly 3%. Entering into 2026, JLL anticipates office rental development to pick up progress, supported by a tightening up supply pipeline. “As vacancy rates are predicted to tighten up in between 2025-2027, whole-floor and multi-floor options will certainly turn into significantly minimal, possibly driving rental prices beyond some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
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Rentals for prime office space in Singapore proceeded expanding in 3Q2025, based on study from real estate consultancies. In its latest quarterly workplace market report, JLL’s research study reveals that Grade A workplace rents in the CBD improved 1.3% q-o-q to $11.83 psf per month (psf pm) past quarter, the biggest quarterly development in 6 quarters.
” Singapore’s office market has actually been standing up well, in part supported by stronger-than-anticipated economic principles and a much more conducive interest rate setting,” states Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, watches that “selective upgrades to top quality space have actually developed a two-tier market where more recent, well-connected structures prosper and older supply encounters expanding vacancy stress.”
In a different record, research by Knight Frank shows prime grade office leas in the Raffles Place and Marina Bay places expanded 0.3% q-o-q to reach approximately $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q development recorded in 2Q2025, and brings overall rental development for the initial 9 months of the year to 0.4%.
The higher growth was mostly attributed to the addition of IOI Central Boulevard Towers to the basket of real estates kept track of by JLL. Excluding IOI Central Blvd Towers, CBD workplace rents rose by less than 1%, on the same level with the last six quarters.
The minimal offered supply, paired with a cautious organization environment, led to leasing event being mainly driven by lease renewals, claims Knight Frank. Nevertheless, select occupiers, particularly those with ending leases, are choosing to relocate to newer, better-quality buildings in tandem with right-sizing or measured development. Instances 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 expand its space in the latter.
