Strong demand for office space will continue to push up rents: analysts
Posted on October 25, 2007 at 10:40 AM
To meet demand, the government is releasing transitional office sites into the market.
But property watchers say demand remains strong and rents will continue to push upwards.
Property firm Savills can now fit another 10 staff into its Shaw House office at Orchard RSINGAPORE : Higher rents in the Central Business District (CBD) are forcing companies to re-configure their current space, or consider shifting part of their operations to other locations.
To meet demand, the government is releasing transitional office sites into the market.
But property watchers say demand remains strong and rents will continue to push upwards.
Property firm Savills can now fit another 10 staff into its Shaw House office at Orchard Road.
It did so simply by halving its reception area.
Like Savills, more companies are reconfiguring their offices to maximise use of space and keep costs down.
Ku Swee Yong, Director, International Marketing, Savills, says: "There is still a lot more scope to restructure office space usage in the CBD - Shenton Way, Robinsons Road, Raffles Place. Many of these so called lower value type of work that probably is not customer facing, for example backroom operations, IT, maybe even administrative, human resource, transaction processing work, could be moved out of the CBD office."
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It did so simply by halving its reception area.
Like Savills, more companies are reconfiguring their offices to maximise use of space and keep costs down.
Ku Swee Yong, Director, International Marketing, Savills, says: "There is still a lot more scope to restructure office space usage in the CBD - Shenton Way, Robinsons Road, Raffles Place. Many of these so called lower value type of work that probably is not customer facing, for example backroom operations, IT, maybe even administrative, human resource, transaction processing work, could be moved out of the CBD office."
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