Office spaces outside CBD 'need to work harder'
They need competitive edge as rental gap between central area and beyond narrows, say market watchers
Add BT as a preferred source
Singapore
THE rental gap between Grade A central business district (CBD) office space and those outside the district is the smallest that it has been in a decade. With CBD rentals having plummeted more than 20 per cent since the start of 2015 according to CBRE's index, city-fringe and suburban offices are finding themselves having to differentiate on building design and amenities to attract tenants.
CBRE data shows that the rental gap between the two regions has gradually narrowed from 64 per cent in Q1 2015 to 54 per cent in Q2 2017. CBD Grade A office rents averaged about S$8.95 per square foot (psf) in the second quarter.
Copyright SPH Media. All rights reserved.
