Retail, office rents headed for divergent paths

Singapore

RENTAL outlook for office and retail space will take divergent paths this year, and the trend is already telling in the latest Q1 data.

Retail rents decreased by 0.3 per cent in the first quarter, after a 0.5 per cent increase in Q4 2014, while office rents rose 0.6 per cent after a 1.7 per cent increase in the fourth quarter last year. On the office front, rents in the central area held up better compared to the fringe areas (0.92 per cent quarter on quarter in the central area as compared to -0.8 per cent in the fringe area).