# 'Severe' supply crunch to persist for premium offices; leasing demand led by renewals

- **Source:** EdgeProp Singapore
- **Published:** 2026-06-29T08:29:43.000Z
- **Author:** Fiona Lam
- **Original:** https://www.edgeprop.sg/property-news/severe-supply-crunch-persist-premium-offices-leasing-demand-led-renewals
- **Topics:** Commercial & Industrial

## Featured rationale

The supply crunch and flight to quality may sustain landlords’ pricing power, while cost-sensitive occupiers could renew leases or seek decentralised alternatives.

## AI summary

CBD Grade A gross effective rents rose 1.1% q-o-q to $12.19 psf monthly in 2Q2026, with meaningful new supply delayed until 2028.

## Original article

Tight supply in Singapore’s CBD premium or Grade A office market looks set to continue, with the next wave of major new projects coming onstream only from 2028 onwards.

At the same time, demand from occupiers in the second quarter of 2026 was mainly driven by lease renewals rather than expansions, while the flight to quality showed no signs of abating.

These factors supported higher office rents during the period, with further rental growth expected in the coming quarters, analysts said in separate research reports released in late June 2026.

Read also: M&G bets on senior living as AI drives new divides in property markets

Rising rents and 'persistently high' occupancy

Singapore’s CBD Grade A office market has entered its sixth year of rental growth — the longest upward cycle on record — as vacancy neared a nine-quarter low, JLL Research highlighted.

It found that gross effective rents rose 1.1% q-o-q to $12.19 psf per month in the second quarter this year, accelerating from the 0.5% growth seen in the first quarter.

Excluding new supply, vacancy fell to 5.6%, the lowest level in nine quarters, as sustained occupier demand absorbed quality space faster than landlords could deliver it, JLL said.

Average CBD Grade A office rents

Shaw Tower's completion added new stock, pushing up overall CBD vacancy slightly to 6.7%, from 6.3% previously.

“However, the underlying market dynamic remains firmly supply-constrained, with Marina Bay remaining the primary demand driver as IOI Central Boulevard Towers and other prime buildings near full occupancy,” JLL added.

Recent high-profile occupiers completing moves to Marina Bay included global data and AI company Databricks, which quadrupled its Singapore footprint to 32,000 sq ft. Other notable occupiers completing relocations to the area include leading international firms A&O Shearman, Franklin Templeton, and Virtu Financial.

Read also: Prime US Reit leases 40,000 sq ft at Denver office building to S&P Global

And in the Shenton Way/Tanjong Pagar sub-market, Keppel South Central benefitted from tenants needing to relocate from 79 Anson Road ahead of the latter’s redevelopment. JTB Singapore, OOCL, and Wan Hai Lines are among those taking up space in the new building, JLL said.

The impending completion of the Prince Edward Road MRT station on the Circle Line, as well as the new Keppel and Cantonment stations completing the full loop in July 2026, is further enhancing accessibility in the Shenton Way/Tanjong Pagar sub-market. JLL expects this to support landlords’ ability to raise rents in the area.

Knight Frank Singapore’s analysis found that rents of prime-grade office space in the Raffles Place/Marina Bay area grew by 1% q-o-q to an average of $11.69 psf per month in 2Q2026.

Occupancy in the Raffles Place/Marina Bay precinct also saw a slight dip of 0.3 percentage point to 96.7%, as compared to 97% in the first quarter, the real estate consultancy’s data showed.

Overall, CBD occupancy increased by 0.6 percentage point q-o-q to 95.3% in the second quarter this year.

“The persistently high occupancy levels highlight the enduring appeal of the CBD for office tenants,” Knight Frank noted.

Read also: Tight supply lifts Singapore office rents even as global headwinds weigh on sentiment

Average office rentals by key precincts in 2Q2026

Newmark observed that premium or Grade A rents in Raffles Place and New Downtown touched $12.18 psf per month in 2Q2026, up 0.4% q-o-q.

Selected premium office buildings have already seen rents exceeding $13.70 psf per month, which reflects firm demand for better and more premium space in core CBD locations, said June Chua, Newmark’s senior managing director, head of Singapore leasing.

Meanwhile, in Shenton Way, Tanjong Pagar and Robinson, premium office rents rose by 0.4% q-o-q to $10.07 psf per month.

“The severe premium/Grade A office supply crunch in 2025–2027 has firmly turned conditions in landlords’ favour,” Chua said.

Leasing demand to widen further

Office occupiers are generally favouring stability over expansion, with relocation costs a major barrier to expansion moves, according to Knight Frank.

“In many cases, renewals were executed more out of necessity than expansion, as it is easier to justify rental increments that are broadly in tandem with Singapore’s inflation levels than to commit to significant rental step-ups,” said Tridiana Ong, head of occupier strategy and solutions at Knight Frank Singapore.

The lack of justifiable relocation budgets has resulted in a corresponding lack of urgency among corporates to change premises, she added.

Despite the low churn, AI-related firms have been reported to be either setting up offices or expanding.

Putting it in perspective, Ong pointed out that the take-up of office space by growing AI enterprises should be “weighed against ongoing rightsizing” by other established technology firms and financial institutions.

JLL likewise reckoned the breadth of leasing demand will continue to widen in the near term, with more AI and technology firms joining occupiers in the financial services and professional services sectors as active movers.

Tenants across sectors — from AI and fintech to professional services and insurance — are increasingly committing to premium, well-located spaces ahead of need. This comes as the window to secure contiguous, large floor plates is closing fast, noted Michael Glancy, the firm’s country CEO for Singapore and Southeast Asia.

For instance, Shell’s pre-commitment of about 100,000 sq ft at Asia Square Tower 1 and Databricks’ expansion at IOI Central Boulevard Towers reflect this shift.

“We expect the flight to quality to remain the dominant occupier theme through 2H2026, as companies compete for a shrinking pool of premium, large-format spaces,” said Chua Yang Liang, head of research and advisory for JLL Southeast Asia.

Upcoming supply in 2028

Singapore’s office supply shortage shows no signs of easing, with Shaw Tower — the only major Grade A completion in 2026 — already substantially leased.

In 2027, Newport Tower will be the sole non-strata new development to complete.

JLL highlighted that the next wave of meaningful new supply will not arrive until 2028 — limited to The Skywaters, The Clifford, One Comcentre and Union Square Central, with the broader development pipeline remaining thin thereafter.

The increased sophistication of upcoming projects could support continued office rental growth. JLL maintained its forecast of the 2026 full-year CBD Grade A rents at about 4%, and projected a cumulative five-year increase of around 15% through 2030.

Selected upcoming office supply islandwide

For Knight Frank, the market dynamics seen in the first six months of this year could prevail in the remaining half, and likely into 2027.

It projected rents to increase by 3–5% for the whole of 2026 given the tight CBD supply.

Decentralised spaces may capture spillover demand when CBD occupiers require lower-cost options to accommodate much-needed growth, Ong said.

Newmark foresees rents for premium and Grade A office space to rise 3–5% this year, while q-o-q growth may moderate in the coming quarters.

## Chinese translation

> Translation model: grok

### 优质写字楼供应“严重”紧缺将持续；租赁需求以续约为主

随着可锁定连续大面积楼层的窗口收窄，更多租户提前锁定优质、地段优越的空间

新加坡中央商务区（CBD）优质或甲级（Grade A）写字楼供应紧缺态势料将持续，下一波主要新项目预计要到2028年起才陆续入市。

与此同时，2026年第二季度租户需求主要来自租约续签，而非扩租，而“向优质空间迁移”的趋势未见减弱。

分析师在2026年6月底发布的多份研究报告中指出，上述因素支撑了期间写字楼租金上行，并预计未来数季租金仍有进一步增长空间。

租金上升与“持续高企”的出租率

仲量联行（JLL）研究指出，新加坡CBD甲级写字楼市场已进入租金连续增长的第六年——为有记录以来最长的上升周期——空置率亦接近九个季度低位。

研究显示，今年第二季度整体有效租金环比上涨1.1%，至每平方英尺每月12.19新元，增速较第一季度的0.5%有所加快。

JLL表示，剔除新增供应后，空置率降至5.6%，为九个季度以来最低；持续的租户需求以快于业主交付的速度消化优质空间。

Shaw Tower落成带来新增供应，使CBD整体空置率由此前的6.3%略升至6.7%。

“不过，底层市场格局仍明显受供应约束，滨海湾（Marina Bay）仍是主要需求引擎，IOI Central Boulevard Towers及其他优质大楼接近满租。”JLL补充道。

近期迁入滨海湾的知名租户包括全球数据与人工智能公司Databricks，其新加坡办公面积扩大至原来的四倍、达32,000平方英尺。其他完成迁址至该区域的知名国际企业还包括A&O Shearman、Franklin Templeton与Virtu Financial。

在Shenton Way/丹戎巴葛（Tanjong Pagar）次市场，Keppel South Central因租户须在79 Anson Road重建前迁出而受惠。JLL表示，日本交通公社新加坡（JTB Singapore）、东方海外货柜航运（OOCL）与万海航运（Wan Hai Lines）等均已入驻该新大楼。

爱德华太子路（Prince Edward Road）地铁站即将通车（环线），以及克佩尔（Keppel）与坎顿门（Cantonment）新站于2026年7月完成环线闭环，将进一步提升Shenton Way/丹戎巴葛次市场的可达性。JLL预计，这将支持业主在该区域上调租金。

莱坊新加坡（Knight Frank Singapore）分析显示，莱佛士坊/滨海湾优质写字楼租金在2026年第二季度环比增长1%，平均至每平方英尺每月11.69新元。

该房地产咨询机构数据还显示，莱佛士坊/滨海湾片区出租率较第一季度的97%略降0.3个百分点，至96.7%。

整体而言，今年第二季度CBD出租率环比上升0.6个百分点，至95.3%。

“持续高企的出租率突显CBD对写字楼租户的持久吸引力。”莱坊指出。

Newmark观察称，莱佛士坊与新市中心（New Downtown）的优质或甲级租金在2026年第二季度触及每平方英尺每月12.18新元，环比上涨0.4%。

Newmark新加坡租赁业务高级董事总经理兼主管June Chua表示，部分优质写字楼租金已超过每平方英尺每月13.70新元，反映核心CBD地段对更优质、更高端空间需求坚挺。

与此同时，在Shenton Way、丹戎巴葛与罗敏申（Robinson）一带，优质写字楼租金环比上涨0.4%，至每平方英尺每月10.07新元。

“2025至2027年优质/甲级写字楼供应严重紧缺，已使市场条件明显向业主倾斜。”Chua说。

租赁需求有望进一步拓宽

莱坊指出，写字楼租户整体更偏向稳定而非扩张，搬迁成本是扩租/迁址的主要障碍。

“很多情况下，续约更多是出于必要，而非扩张；相较于承担显著的租金跃升，较易合理化与新加坡通胀水平大体同步的租金增幅。”莱坊新加坡租户策略与解决方案主管Tridiana Ong表示。

她补充说，缺乏合理的搬迁预算，也导致企业更换办公场所的紧迫感不足。

尽管换租活跃度偏低，但仍有报道称人工智能相关企业正设立办公室或扩大面积。

Ong指出，应将成长中的AI企业写字楼吸纳量，与其他成熟科技公司及金融机构持续的“权利重塑/缩租”一并权衡。

JLL同样认为，短期内租赁需求广度将继续扩大，更多AI与科技公司将与金融服务、专业服务领域的活跃租户一道成为主力。

JLL新加坡及东南亚国家首席执行官Michael Glancy指出，从AI、金融科技到专业服务与保险，各行业租户正越来越多地“提前于需求”锁定优质、地段优越的空间——因为可锁定连续大面积楼层的窗口正迅速收窄。

例如，壳牌（Shell）在Asia Square Tower 1预租约10万平方英尺，以及Databricks在IOI Central Boulevard Towers的扩租，均体现这一转向。

“我们预计，‘向优质迁移’将在2026年下半年继续成为主导的租户主题，企业将竞逐日益稀缺的优质、大面积空间。”JLL东南亚研究与咨询主管蔡扬亮（Chua Yang Liang）表示。

2028年供应展望

新加坡写字楼供应短缺未见缓解迹象——2026年唯一主要甲级落成项目Shaw Tower已基本租出。

2027年，Newport Tower将成为唯一非分层（non-strata）新开发落成项目。

JLL强调，下一波有实质意义的新增供应要到2028年才会到来——仅限于The Skywaters、The Clifford、One Comcentre与Union Square Central，其后整体开发管道仍偏薄。

即将入市项目的更高规格，或可继续支撑写字楼租金增长。JLL维持2026年全年CBD甲级租金涨幅约4%的预测，并预计至2030年五年累计涨幅约15%。

莱坊认为，上半年所见的市场动态，可能在下半年延续，并有望延伸至2027年。

鉴于CBD供应紧张，该机构预计2026年全年租金涨幅为3%至5%。

Ong表示，当CBD租户需要以较低成本空间承接必要增长时，去中心化（郊外/副中心）空间或可吸纳溢出需求。

Newmark预计，今年优质及甲级写字楼租金将上涨3%至5%，而未来数季环比增速或将放缓。