logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Singapore
  • Global
  • United States
  • Angola
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Morocco
  • Netherlands
  • New Zealand
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Russia
  • Saudi Arabia
  • Singapore
  • Slovakia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
+65 6224 8181
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Investment Management (CBRE Global Investors)
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Office
      • Retail
      • Industrial & Logistics
      • Data Centres
      • Hotels
      • Japan Desk
      • Residential
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Capital Advisors
      • Consulting
      • Host
      • Investment Accounting & Reporting Solutions
      • Leasing & Advisory
      • Project Finance
      • Property Management
    • Services for Occupiers
      • Enterprise Facilities Management
      • Host
      • Leasing & Advisory
      • Occupier Consulting
      • Portfolio Services
      • Project Management
      • Project Finance
      • Transaction Management
      • Workplace
  • Properties
    • Office
      Retail
      Industrial
      Flexible Office
      Residential
      Shophouse
      Hospitality
  • Research & Reports
    • About Research
      Singapore Research Archives
      South East Asia Research
      Asia Pacific Research
      Global Research Gateway
      Global Research Gateway Support
  • People & Offices
  • About CBRE
    • Careers
      Client Tools
      Corporate Information
      Corporate Responsibility
      Case Studies
      Investor Relations
      Media Centre
      Asia Media Centre
      Expert Opinions
      CBRE 60 Anniversary

Next

Press Release
A 999-Year Two-storey CBD Shophouse Opposite Telok Ayer MRT Station for Sale
  • Central Business District accounted for 80 per cent of net office takeup by tech firms in Singapore since Q1 2016

Central Business District accounted for 80 per cent of net office takeup by tech firms in Singapore since Q1 2016

Singapore | December 7, 2017
  • Email
  • Share
  • Tweet
  • Share

Singapore 7 December 2017 - The wave of new supply in the Central Business District (CBD) has prompted the majority of tech firms setting up operations in Singapore to take up space there, according to CBRE’s latest Asia Pacific Technology Report.

Tech companies remain one of the main drivers of new and expansionary demand in the Singapore office market. Firms operating in the transport, fintech and online payment sectors have been most active in securing and enquiring for space. The CBRE report tracked transacted office leases since Q1 2016 to the third quarter of 2017.

Michael Tay, Executive Director CBRE’s Office Services said “Expansion is being fuelled by the need to gain first-mover advantage as well as to consolidate market share in Singapore and South East Asia”.

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. The fact that more than 75 per cent of the new supply from 2016 to 2018 are in the CBD is key to this locational gravity. Despite this trend, decentralised office/business park locations with good connectivity and amenities should also appeal to this industry group.

The largest leasing deal in 2017 to date was completed by a U.S. social media firm, which took up approximately 300,000 sf at Marina One. Other top-tier tech firms have taken advantage of the office rental trough to expand and upgrade their buildings and premises. Another U.S. tech MNC pre-leased 125,000 sf at Frasers Tower. GrabTaxi took up 100,000 sf at Marina One and Wirecard relocated to a 25,000 sf space at Mapletree Business City II.  Business parks remain a viable option for tech firms. Newer and higher quality developments in One North and Mapletree Business City are receiving the most interest as they fulfil both locational and quality requirements.

Mr Tay added “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 escalation of rents. On this backdrop, tech firms continuing on the path of growth will need to make decisions quickly.”

Follow us on Twitter: @cbresingapore

And on LinkedIn: company/cbre-asia-pacific

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.

Media Contacts

Geraldine Cheong
Geraldine Cheong
Associate Director
Singapore
Marketing & Communications
+65 63261246
  • Corporate Information
  • Corporate Responsibility
  • Media Centre
  • About CBRE
  • Careers
  • People & Offices
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Policy
  • Singapore Privacy Policy
  • Sitemap
  • Disclaimer
  • Terms of Use
  • LinkedIn
  • Twitter
  • Youtube
  • Facebook
  • Instagram