The death of offices may have been greatly exaggerated

WHILE there's no denying that the pandemic has turned working from home (WFH) into a permanent fixture, the death of the office - and Central Business District (CBD) Grade A offices, in particular - may have been greatly exaggerated.

According to Tay Huey Ying, head of research & consultancy for JLL, CBD Grade A office rents may come under "immense upward pressure, tapering only when new supply outside of the CBD, such as the Jurong Lake District (JLD), comes onstream", potentially from 2027 or 2028 onwards. Once fully developed, office space in JLD could multiply to 1.4 million square metres (sq m) over the next 2 decades, up significantly from 200,000 sq m currently.

For now, Tay said, supply is tight in the CBD, with no new state tenders lined up for the district in the coming years. Meanwhile, demand for office space is far from cratering - supported by tech companies and asset managers, including family offices. Over the past 2 years, even as banks such as DBS and Citigroup have relinquished space, tech names such as ByteDance and Amazon have stepped in to soak it up.