New offices continue to draw firms

[mr funny]

http://www.businesstimes.com.sg/sub/...14269,00.html?

Published November 22, 2010

New offices continue to draw firms

Wong Partnership may be close to a lease at MBFC Tower 3; BOAML takes 4 floors of 50 Collyer Quay

By KALPANA RASHIWALA


(SINGAPORE) The buzz in the new office leasing market continues.


Firm commitments: The 43-storey Asia Square Tower 1, which is expected to be completed in June next year, will have about 1.26 million sq ft of net lettable offices. Besides Citigroup, tenants will include Bank Sarasin, Julius Baer, Google, US law firm White & Case and British insurance giant Lloyd's

BT understands that law firm Wong Partnership may be close to inking a lease for about 100,000 square feet at Marina Bay Financial Centre's Tower 3, a 46-storey tower with 1.3 million sq ft that is expected to be ready in the first quarter of 2012. The law firm is expected to move out of its current locations at One George Street and 63 Market Street.

McGraw Hill has also leased 30,000 sq ft at MBFC Tower 3.

Business consulting, and risk and insurance services group Marsh & McLennan too is said to be mulling over whether to leave its current location at Marsh & McLennan Centre and PWC Building, both at Cross Street. It is believed to be looking at about 100,000 sq ft of space at Asia Square's Tower 1 as a possible location.

Meanwhile, Bank of America Merrill Lynch (BOAML) has inked a lease for 120,000 sq ft at 50 Collyer Quay. It will occupy about four floors in the upper zone of the 18-storey office tower, which is expected to receive Temporary Occupation Permit in Feb 2011.

The bank will move out of Republic Plaza (where it occupies about 60,000 sq ft). It is also expected to exit the Marina Bayfront office block (which is part of the Marina Square development); the bank is currently leasing the entire six-storey building, which has a net lettable area of about 80,000 sq ft ft.

BOAML is seen to be consolidating its front offices at 50 Collyer Quay and its back offices at the Bank of America Merrill Lynch Harbourfront building, where the bank occupies the entire six-storey block which has 200,000 sq ft net lettable area.

Including the BOAML deal, 50 Collyer Quay's 412,000 sq ft net lettable area is now over 60 per cent let. The building's other tenants will include Skandinaviska Enskilda Banken, Bain & Company, British law firm Allen & Overy, and software group Citrix.

Overseas Union Enterprise, the developer of 50 Collyer Quay, is expected to occupy the top floor.

Jones Lang LaSalle is the sole marketing agent representing the landlords of 50 Collyer Quay and Asia Square. On the tenancy side, CB Richard Ellis is understood to have advised on two major anchor tenant transactions - BOAML for its lease at 50 Collyer Quay and Citigroup's 250,000 sq ft lease at Asia Square Tower 1.

The 43-storey Asia Square Tower 1, which is expected to be completed in June next year, will have about 1.26 million sq ft net lettable offices. Besides Citigroup, other tenants will include Bank Sarasin, Julius Baer, Google, US law firm White & Case and British insurance giant Lloyd's.

CBRE's executive director (office services) Moray Armstrong declined to comment on recent leasing transactions that the firm has concluded, when contacted by BT. However, he observed that strong leasing momentum has led to an increase in pre-commitment rentals for new Grade A office buildings (under construction) of about 30-40 per cent over the past year. The rate is currently at about $10-ish per square foot a month on average.

Looking ahead, he said: 'Office rents can be expected to rise steadily provided the underlying economic fundamentals continue to deliver strong GDP growth in Singapore.'

As for space that will be vacated in existing office blocks as tenants move to newer developers, Mr Armstrong said: 'The prospect of excessive second-hand or shadow space hitting the market in 2011/12 is diminishing as a number of sizeable new tenant commitments are already in place on such space. Nonetheless, this segment of the market still can offer occupiers a viable alternative to the new Grade A space on potentially competitive terms.'

[mr funny]

http://www.straitstimes.com/Money/St...ry_604903.html

Nov 19, 2010

S'pore prime office rents spike in Q3

Biggest increase since end-2007, with 7.2% quarter-on-quarter rise

By Gabriel Chen


RISING prime office rents in Singapore accelerated in the third quarter, jumping the most since the end of 2007, according to a new report by CB Richard Ellis (CBRE).

CBRE said prime rents saw a big jump of 7.2 per cent quarter-on-quarter, from $6.90 per sq ft per month to $7.40 psf per month during the period, thanks to increasing demand from financial institutions, insurance firms and professional business service companies.

The major leasing deals reported during this period were primarily focused on various new Grade A or prime developments.

In another boost for the office market, the vacancy rate at Grade A buildings fell, the report said.

The CBRE findings come on the heels of a Colliers International report, which indicated that Singapore notched up the biggest increase in rents across the Asia-Pacific region in the third quarter.

Colliers found that in US dollar terms, Central Business District Grade A office rents leapt 15.6 per cent in the three months ended Sept 30 compared with the previous quarter.

'Singapore has enjoyed particularly strong occupier demand over the past six months,' said CBRE Singapore's executive director for office services, Mr Moray Armstrong.

'Even while the volume of leasing activity may ease going into 2011, we remain optimistic on the market outlook.'

The CBRE report noted that overall office rents in Asia rose 3.2 per cent quarter-on-quarter in the third quarter of this year.

Aside from the higher office rents in Singapore, the increase was also attributable to the strong growth in Greater China.

For example, the Hong Kong office market recorded the largest rental growth of any market in the region.

However, rental growth in cities such as Guangzhou, Shanghai and a number of major ones in India is already being constrained by the large amount of new supply coming on stream in the short to medium term, CBRE said.

In Japan, the Tokyo Grade A office market saw mixed fortunes during the quarter with well-located Grade A buildings securing new tenants but other Grade A buildings in less attractive locations continuing to have trouble finding tenants.

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