S'pore office rents seen rising up to 15% this year

[SINGAPORE] Singapore's office rents are set to rise as much as 15 per cent this year on increased demand and a dearth of new developments, said Lynette Leong, chief executive officer of CapitaCommercial Trust Management Ltd.

Global companies including Cargill Inc, the biggest US agricultural firm, and Bordier & Cie, a Swiss private bank's local subsidiary, are driving the recovery as they set up offices in the central business district, said Ms Leong, whose company manages the biggest office trust in Asia outside Japan.

"I see an acceleration in rents coming in the second half, as there is no new supply next year and tenants will feel the crunch when they realise there is no new supply," Ms Leong said in an interview on Monday. "Rents for our portfolio have already increased by 5 per cent in the first quarter compared to a year ago."