Office leasing activity to take a hit, shadow space to rise next year

IN THE face of a weakening global economy and a slowdown in the tech sector, office leasing activity in Singapore is poised to shrink in 2023.

Property consultants also expect an increase in shadow space – excess space on an existing lease obligation that a tenant would like to give up by finding a replacement tenant for the landlord.

Nevertheless, with the relatively low office supply – after factoring in buildings that will be demolished for redevelopment – 2023 office rents are likely to remain firm with a much smaller rise than in 2022, said Savills Singapore’s executive director of commercial leasing, Ashley Swan.