CBD Office Rents Hit 17-Year High of $12.04 PSF in 1Q2026

Grade A office rents in the Central Business District (CBD) have hit a 17-year high of $12.04 psf per month (pm) in 1Q2026, inching up 0.5% q-o-q over the first three months of this year, based on a market report published by JLL.

Likewise, a market report by CBRE also noted that Grade A office rents in the core CBD, which covers zones like Shenton Way and Marina Bay, climbed for the fifth consecutive quarter to hit an average of $12.40 psf pm.

Office demand has been supported by a relatively more stable business environment and rental growth is expected to remain on an upward trajectory despite ongoing headwinds from geopolitical uncertainty, compounded by higher costs for construction, and hybrid work arrangements influencing corporate real estate decisions.

With organisations investing in smaller, best-in-class spaces, Singapore’s office market will likely be characterised by a powerful concentration of demand at the top end, says Andrew Tangye, Head of Office Leasing and Advisory at JLL Singapore.

“The supply of prime, high-quality office space in Singapore is tightening, as tenants increasingly compete for buildings that enhance employee experience and advance sustainability objectives,” he says.

The JLL report also mentions that this heightened demand has led to some office spaces being re-let even before the current occupants vacate, illustrating the market’s momentum. Timing and brand reputation have become critical factors in securing leases, with landlords favouring reputable tenants able to commit to early occupancy.

Owners of older office assets that also boast strong location advantages have a unique opportunity to unlock value by upgrading or redeveloping their properties to attract this new wave of high-quality demand,” says Tangye.

Exhibit 1: Average Office Rentals by Key Precincts in 1Q 2026

Separately, another market report by Knight Frank shares that although overall CBD office occupancy experienced a slight dip of 0.2 percentage points to 94.7% in 1Q2026, it was offset by a yearly increase of 1.2 percentage points compared to 1Q2025.

“The Singapore office market remained stable in 1Q2026, supported by the continued cautious flight to quality and the draw of a CBD location,” says Tridiana Ong, Head of Occupier Strategy and Solutions at Knight Frank.

Data compiled by Knight Frank indicates that rents of prime Grade A office space in the Raffles Place / Marina Bay precinct grew 0.7% q-o-q to record an average of S$11.57 psf pm last quarter.

Even though landlords have adopted a generally defensive orientation amid the Middle East conflict, Singapore’s safe-haven status continued to underpin demand, particularly for prime grade office spaces, says Ong.

“In fact, the conflict may have reinforced Singapore’s safe haven status as some multinational firms in these affected zones may consider flight to safety relocations, considering Singapore as a stable base for Asia Pacific operations,” she says.

Continued flight to quality drives CBD office absorption

In general, demand for Grade A offices in the CBD has been supported by a diverse mix of sources. This includes professional services, commercial banking, wealth management, insurance, with artificial intelligence businesses committing to dedicated, self-managed office spaces, according to CBRE.

“This suggests the maturation of these businesses in Singapore, and their desire and readiness for operational certainty, brand presence, and space customisation,” says David McKellar, Head of Office Services and Head of Leasing at CBRE Singapore.

In particular, co-working operators have remained active in the office leasing market, and are continuing their expansion plans, backed up by robust underlying demand from their own occupier base, says McKellar. He says that these end-users include start-ups, project teams, and international companies looking to create a Singapore foothold.

One of the newest co-working spaces to open is The Executive’s Centre’s location at IOI Central Boulevard Towers, one of the newest Grade A commercial buildings in the CBD. You can read about that space here.

Exhibit 2: Selected Upcoming Office Supply Islandwide

With a limited pipeline of new office completions expected in 2026 and 2027, new office supply is falling below historical demand levels, which could mean landlords of high-quality buildings are operating in a distinctly landlord-favourable environment.

“This imbalance between demand and supply is likely to keep rents well-supported throughout 2026,” says McKellar.

Macro and micro-economic factors shape leasing activity

Tricia Song, CBRE Head of Research, Singapore and Southeast Asia, remains cautiously optimistic with a forecast of about 5% y-o-y rental growth for Grade A offices by the end of 2026. 

She adds that this is not the first time that landlords and occupiers are facing a volatile macro-economic environment that has cast uncertainty over their future corporate leasing needs.

For example, in the high-inflation environment of 2022, some occupiers opted to renew leases and remain in place rather than commit to new space. A similar pattern could possibly emerge if the uncertainty globally persists and the low turnover contributes to the limited vacancy, strengthening the landlords’ negotiating position, says Song.

On the other hand, any prolonged elevation of oil and gas prices drag down business and consumer confidence and, in turn, affect Singapore’s economic growth, cautions Chua Yang Liang, Head of Research and Consultancy, Southeast Asia, at JLL.

“The office market is influenced by a notably constrained supply pipeline. Investment-grade office completions for 2026–2027 are anticipated to be at their lowest in three years,” says Chua.

Some of the major upcoming projects that will be completed soon include the redevelopment of Shaw Towers later this year and Newport Tower in 2027. Meanwhile, other new completions are mainly boutique or strata-titled developments.

This supply situation is likely to contribute to a continued mismatch in prime office demand and supply, and may sustain CBD office rent growth in the range of 4 to 5% for 2026, says Tangye.