Office leasing activity to take a hit, shadow space to rise next year
But most CBD Grade A office landlords may still be able to eke out a modest rental increase in 2023, given the generally tight supply
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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.
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