reporter2
05-06-12, 21:23
http://www.businesstimes.com.sg/specials/property/kaplan-lease-office-space-pomo
Published June 05, 2012
Kaplan to lease office space at Pomo
EMC in talks to consolidate its office space at One@Changi City
By Kalpana Rashiwala
[SINGAPORE] Kaplan will join the growing number of educational institutions located in the Selegie-Middle Road-Bras Basah cluster, while data storage company EMC is said to be in advanced stages of discussion to lease about 100,000 sq ft of business park space at One@Changi City.
BT understands that Kaplan is in advanced stages of negotiating a lease for about 90,000 sq ft of office space at Pomo along Selegie Road. The space covers the sixth to ninth floors of the building.
The bulk of this space is currently occupied by Singapore Pools, which is expected to move out of Pomo in the first quarter of next year to its own building at Middle Road. Pomo's owner, CLSA Capital Partners, is then likely to do an internal revamp before Kaplan moves into the building in second-half 2013.
Kaplan will be relocating to Pomo from its main campus at 51 Cuppage Road (formerly Starhub Centre), where it occupies over 60,000 sq ft. BT understands the educational institution recently extended its lease at 51 Cuppage Road, which was due to expire this year, until the end of next year. It should be able to move to Pomo by then.
CBRE is understood to be brokering Kaplan's leasing arrangement at Pomo, which will be the group's main Singapore campus, complementing the existing one-and-a-half floors (about 50,000 sq ft) it continues to lease at Wilkie Edge nearby. Meanwhile One@Changi City, a business park development that will be ready by year end, could clinch EMC as a tenant soon. EMC is in advanced negotiations for about 100,000 sq ft.
This will mark a consolidation for the group, which will vacate about 30,000 sq ft at Suntec City Tower 4 and 40,000 sq ft at No 3 Changi Business Park, where its leases are understood to expire in early-2013.
Market watchers suggest the per square foot monthly rental cost for a large occupier at One@Changi City could be about $4 psf - roughly half what it would pay at Suntec City.
Jones Lang LaSalle is said to be advising EMC but declined to comment on the transaction.
The nine-storey One@Changi City has a total net lettable area of about 650,000 sq ft. Anchor tenant Credit Suisse has taken about 315,000 sq ft on five levels, with an option for an additional two floors (175,000 sq ft).
One@Changi City is part of an integrated development including the Changi City Point mall (which opened last year) and a boutique hotel residence, Capri. The project is being developed by Ascendas Land and Frasers Centrepoint.
JLL's head of markets Chris Archibold points to a "distinct dichotomy in terms of activity in the Singapore CBD office market between large and small tenants". Tenants of less than 10,000 sq ft are still relatively active whereas larger CBD occupiers are very quiet.
"Activity from much of the market is focused on cost savings and this is particularly the case with the large occupiers, many of whom are looking at cheaper premises outside the CBD or, for those whose business needs demand a CBD presence, looking at splitting their operations to take advantage of the cost savings outside the CBD.
"This activity is focused on both out-of-town office space and business park space for those occupiers that are able to qualify for business park usage guidelines.
Illustrating the financial incentive for large occupiers to look outside the CBD amid the current uncertain business climate, Mr Archibold points to the gap in average monthly rents for the following three types of space in Q1 2012 - $9.30 per square foot for JLL's Grade A office rental basket, $5.40 psf for its non-CBD office basket and $3.25 psf for business park space.
CBRE executive director (office services) Moray Armstrong said: "Large occupiers looking out of town is a natural by-product of more austere times but there's still ample activity in the CBD by small- to medium-sized occupiers. We are particularly encouraged by the number of new-to-market companies from industries such as commodities, energy, and professional services such as law firms."
Published June 05, 2012
Kaplan to lease office space at Pomo
EMC in talks to consolidate its office space at One@Changi City
By Kalpana Rashiwala
[SINGAPORE] Kaplan will join the growing number of educational institutions located in the Selegie-Middle Road-Bras Basah cluster, while data storage company EMC is said to be in advanced stages of discussion to lease about 100,000 sq ft of business park space at One@Changi City.
BT understands that Kaplan is in advanced stages of negotiating a lease for about 90,000 sq ft of office space at Pomo along Selegie Road. The space covers the sixth to ninth floors of the building.
The bulk of this space is currently occupied by Singapore Pools, which is expected to move out of Pomo in the first quarter of next year to its own building at Middle Road. Pomo's owner, CLSA Capital Partners, is then likely to do an internal revamp before Kaplan moves into the building in second-half 2013.
Kaplan will be relocating to Pomo from its main campus at 51 Cuppage Road (formerly Starhub Centre), where it occupies over 60,000 sq ft. BT understands the educational institution recently extended its lease at 51 Cuppage Road, which was due to expire this year, until the end of next year. It should be able to move to Pomo by then.
CBRE is understood to be brokering Kaplan's leasing arrangement at Pomo, which will be the group's main Singapore campus, complementing the existing one-and-a-half floors (about 50,000 sq ft) it continues to lease at Wilkie Edge nearby. Meanwhile One@Changi City, a business park development that will be ready by year end, could clinch EMC as a tenant soon. EMC is in advanced negotiations for about 100,000 sq ft.
This will mark a consolidation for the group, which will vacate about 30,000 sq ft at Suntec City Tower 4 and 40,000 sq ft at No 3 Changi Business Park, where its leases are understood to expire in early-2013.
Market watchers suggest the per square foot monthly rental cost for a large occupier at One@Changi City could be about $4 psf - roughly half what it would pay at Suntec City.
Jones Lang LaSalle is said to be advising EMC but declined to comment on the transaction.
The nine-storey One@Changi City has a total net lettable area of about 650,000 sq ft. Anchor tenant Credit Suisse has taken about 315,000 sq ft on five levels, with an option for an additional two floors (175,000 sq ft).
One@Changi City is part of an integrated development including the Changi City Point mall (which opened last year) and a boutique hotel residence, Capri. The project is being developed by Ascendas Land and Frasers Centrepoint.
JLL's head of markets Chris Archibold points to a "distinct dichotomy in terms of activity in the Singapore CBD office market between large and small tenants". Tenants of less than 10,000 sq ft are still relatively active whereas larger CBD occupiers are very quiet.
"Activity from much of the market is focused on cost savings and this is particularly the case with the large occupiers, many of whom are looking at cheaper premises outside the CBD or, for those whose business needs demand a CBD presence, looking at splitting their operations to take advantage of the cost savings outside the CBD.
"This activity is focused on both out-of-town office space and business park space for those occupiers that are able to qualify for business park usage guidelines.
Illustrating the financial incentive for large occupiers to look outside the CBD amid the current uncertain business climate, Mr Archibold points to the gap in average monthly rents for the following three types of space in Q1 2012 - $9.30 per square foot for JLL's Grade A office rental basket, $5.40 psf for its non-CBD office basket and $3.25 psf for business park space.
CBRE executive director (office services) Moray Armstrong said: "Large occupiers looking out of town is a natural by-product of more austere times but there's still ample activity in the CBD by small- to medium-sized occupiers. We are particularly encouraged by the number of new-to-market companies from industries such as commodities, energy, and professional services such as law firms."