Offices see priorities shifting towards wellness, accessibility and facilities

Wellness and sustainability in office buildings have taken on greater significance as the return to the office continues in Asia Pacific, with CBRE’s 2023 Asia Pacific Office Occupier Sentiment Survey revealing that occupiers are prioritising accessibility to public transport, carpark, sustainable features and operations, as well as fitness facilities. In Singapore, a wave of new gyms has popped up this year, such as the Anarchy Club, Sparkd, S30 and Lab Studios.

Luke Moffat, regional managing director and head of CBRE advisory and transaction services, Asia Pacific, notes that the demand for ESG-certified office space is substantial, but few occupiers are willing to pay the green rental premium – less than 5%. However, he adds that the premium would be more significant if one compared a green-certified Grade-A building with an older Grade-B building that is not green-certified.

CBRE’s survey also showed an increasing number of companies aiming for their staff to be mainly at the office, with 32% stating their intention to do so in 2023. However, hybrid working will remain as it provides employees flexibility.

Tight market conditions have continued to prop up office rents in Singapore, with the URA office rental index increasing by 2.3% quarter-on-quarter in 2Q2023 – a moderation, but still higher than expected. Median rental (by contract date) in Category 1 office space accelerated by 6.7% quarter-on-quarter in 2Q2023, with vacancy rates for Category 1 buildings declining to 9.2% in 2Q2023 – matching vacancy levels in 2Q2020.

Inside the condominium, there are many facilities and amenities for residents to take advantage of. Some of these include the swimming pool, gym, playground, and a basketball court. The condominium also offers a clubhouse with a fully-equipped kitchen, perfect for hosting birthday parties and other special events. The condominium is also near many shopping malls, restaurants, and other entertainment outlets for residents to enjoy. Residents can also access public transportation easily from Tengah Plantation Close EC. In all, Tengah Plantation Close EC is the perfect place to live. It offers a safe and secure environment and plenty of amenities for residents’ convenience and enjoyment.

A significant new commercial development, IOI Central Boulevard Towers, is set to open next year with 1.26 million sq ft of office space and a 30,000 sq ft retail and F&B space at Marina Bay. To date, about 40% of the building’s net lettable area has been committed.

CBRE notes that although flight to quality and a focus on green buildings remain key trends, the addition of the contributing new project could increase vacancy rate slightly and put pressure on rents in the following months. Nevertheless, flight to new-build and flight to green will remain prominent trends, with Asia Pacific regional vacancy rising to a 20-year high of 18% in the first half of the year.