From shopping belt to business address – Orchard Road’s corporate appeal is growing

[SINGAPORE] Orchard Road may still be better known for boutiques than boardrooms, but a growing roster of corporate occupiers points to an emerging second identity – as a business address. 

Consultancy giant Deloitte Singapore will soon join that roster, relocating from its Shenton Way seat at OUE Downtown in the traditional central business district (CBD) to Orchard Central, after its lease expires at the end of 2026. It will occupy several upper floors of the 12-storey building from 2027. 

In the interim, Deloitte will relocate a portion of its staff to JustCo Place on Orchard Road.  

A Deloitte spokesperson told The Business Times that it had considered several factors – including accessibility, connectivity, employee experience and future space requirements – when deciding the move. 

“This move is part of the broader investment we are making in Singapore,” the spokesperson added, saying the company will share more as plans continue to take shape. 

Deloitte’s relocation follows in the footsteps of a broad spectrum of companies that have made Orchard Road their base. 

Colliers Singapore managing director Bastiaan van Beijsterveldt noted that the prime retail precinct has historically attracted wealth management and private banking groups such as UBS, HSBC and Citi; regional headquarters of consumer, luxury and lifestyle brands; and flexible workspace operators. 

“These are sectors where client-facing image, walkable amenities and proximity to affluent residential catchments often matter as much as proximity to clients or service providers,” he said. 

Still, property consultants observed that such relocations are company-specific, rather than evidence of a broad migration from the CBD. 

Tricia Song, CBRE research head for South-east Asia and Singapore, said the CBD remains the dominant office location for finance, legal services, commodities and many multinational headquarters due to “ecosystem benefits, prestige and proximity to clients”.

She has not observed a “broad-based migration” from Raffles Place, Marina Bay or Shenton Way into the Orchard area, making Deloitte’s decision significant. 

“It reflects a growing willingness among occupiers to evaluate locations beyond the traditional CBD, particularly where workplace experience, talent attraction and accessibility are priorities,” said Song. 

The search for office space has also widened beyond the CBD given tight Grade A office supply and firm rents in the city, said Yvan Maillard, workplace operator Industrious’ vice-president of growth for Asia-Pacific. 

In Q2, core CBD Grade A office rents rose for the sixth straight quarter, increasing 0.8 per cent to S$12.50 per square foot (psf) per month, CBRE data showed. For the first half, rents were up 1.6 per cent. 

Meanwhile, the pipeline is thin. Shaw Tower will be the only major Grade A completion in 2026, and Newport Tower the sole non-strata development due in 2027. The next meaningful wave of supply – The Skywaters, The Clifford, One Comcentre and Union Square Central – is not expected until 2028.

Large occupiers with leases expiring between 2026 and 2028 could increasingly evaluate city-fringe and decentralised locations, with Orchard a “natural shortlist” for those seeking large contiguous spaces, said Beijsterveldt. 

The precinct’s mix of amenities supports its appeal.

Recruitment specialist Adecco, which is based in Shaw Centre, pointed to Orchard Road’s range of dining – “from a S$5 plate of cai fan to Michelin three-star dining experiences” – as well as retail, childcare, wellness and everyday conveniences. 

“(This) creates a vibrant environment that supports employees both professionally and personally,” it said. 

Landy Zhang, director at corporate services provider FidCorp, believes its central location at Orchard Towers was a key factor in helping it retain all its employees over the past five years. 

Wider corporate mix

Interest in non-CBD office locations was already emerging in 2020, when JustCo opened its coworking centre at The Centrepoint, said founder and chief executive Kong Wan Sing. That year, the coworking operator relocated its headquarters to the centre, from Marina One East Tower. 

Demand came particularly from small and medium-sized enterprises, consumer brands or companies looking to draw younger talent, said Kong. 

At Industrious’ Ngee Ann City coworking location, which opened in June 2018, Maillard noted a varied tenant mix that included family offices, investment firms, education and training providers, and media, marketing and creative agencies. 

“For professional companies that do not need to be in the CBD directly, Orchard has all the appeal of a central and connected location with easy access to amenities, and with slightly better rent and price points,” he said.

The most significant move so far has been UBS’ shift in 2021, to a 381,000 sq ft facility at 9 Penang Road, bringing together more than 3,000 employees in wealth management, investment banking and asset management. 

“Our move… reflects our long-term commitment to Singapore, which plays a pivotal role in UBS’ regional strategy and our continued growth ambitions in Asia,” said UBS human resources head for Singapore Karin Samero-Suter. 

Today, the Singapore office is one of the lender’s two major international booking centres for global wealth management in Apac and the South Asia headquarters for its investment banking business. It also houses UBS University, the bank’s largest learning and development hub in Apac, and the UBS AI and Transformation Factory, its first innovation factory globally. 

Adecco similarly consolidated operations previously spread across several branches into a flagship office at Shaw Centre in 2018, operating across multiple floors of the building.

Dispute resolution law firm Oon & Bazul made a more deliberate break from the CBD. The firm acquired a 10,000 sq ft office space at VisionCrest Orchard this year, relocating in mid-July after 18 years in City House at Robinson Road.

Managing partner Bazul Ashhab said the firm had considered leasing premises at several major developments, including Marina Bay Financial Centre, Guoco Midtown and Keppel South Central in Tanjong Pagar, or purchasing office space at Solitaire on Cecil, Samsung Hub and Suntec City. 

“We ultimately chose VisionCrest… not because it was cheaper,” he said. Buying required a substantial downpayment, and the VisionCrest office’s per square foot pricing was comparable to Grade A strata offices in the CBD. 

“After 24 years in the CBD, however, we decided that this was the appropriate moment to plant our flag, take control of our premises and create a permanent home for the next stage of the firm’s growth.” 

Bazul said the Orchard district offered “centrality without immersion in the transactional legal cluster”. It remains close to the Supreme Court and Maxwell Chambers, while gaining the privacy, space and accessibility suited to its “confidential, high intensity work” and client base. 

“Marina Bay will continue to be an outstanding financial district,” he added. “Orchard Road, however, is steadily emerging as a precinct where global wealth, trusted institutions, professional services and high-value advisory work naturally converge.” 

Supply crunch

The Orchard district’s limited supply of suitable office space nonetheless remains a constraint. 

The precinct had about 5.2 million sq ft of office stock as at Q2, just one-sixth of the core CBD’s 33 million sq ft, CBRE data showed. Vacant stock stood at 185,684 sq ft, compared with 1.5 million sq ft in the core CBD. 

The Orchard area is projected to gain 1.2 million sq ft of new office space, but this will be delivered gradually from 2028 to 2030. Meanwhile, the core CBD will see around 660,000 sq ft of new office stock over 2027 and 2028. 

One Comcentre and the Tanglin Shopping Centre redevelopment are expected to add about one million sq ft of Grade A space, said Cushman & Wakefield research head Wong Xian Yang.

One Comcentre, in particular, could provide an early test of demand. The project is a redevelopment of Singtel’s Comcentre headquarters, which has been located at Exeter Road, near Somerset MRT, since 1979. Singtel will be the anchor tenant, occupying 30 per cent of the total development area. Joint venture partner Lendlease will provide development, construction and property and asset management services. 

The shortage of Grade A space across central Singapore – coupled with occupiers’ growing emphasis on sustainability, workplace experience and digital connectivity – supported the project’s commercial case, said Lendlease development director Debra Ma.  

One Comcentre will offer around 54,000 sq m of office space to third-party corporate tenants, and 20,000 sq m of lifestyle and retail space. Formal marketing and leasing begins in the third quarter of 2026. 

Gan Siok Hoon, Singtel’s group chief corporate officer, said the telco is “very encouraged by the strong market response” so far, with interest from a diverse range of industries including technology and artificial intelligence, banking, insurance and fast-moving consumer goods.  

“These companies are currently based in various office locations across Singapore, demonstrating the new Comcentre's ability to attract demand beyond its immediate catchment.”