Two-tier office rental market likely: Colliers

Singapore

A TWO-tier office rental market may be ahead, said Colliers International in a report issued on Wednesday, as landlords of older buildings turn to better incentives or more competitive rents upon renewal in an attempt to retain tenants.

"As occupiers move into newly-completed office buildings, demand for office space in existing developments in the CBD is likely to be supported by a flight to quality effect where office occupiers take the opportunity to upgrade from older buildings," said Calvin Yeo, deputy managing director of Colliers International.