CBD Rents Rise: The Road Ahead

Prime office rents in the Central Business District have climbed again, and the natural question is what comes next. EdgeProp Singapore, citing JLL and Knight Frank, reports CBD Grade A rents at about $12.32 psf per month in the third quarter of 2026, up 1% quarter-on-quarter and 2.8% year-to-date. Here is a sequence of developments worth tracking.

1. Now: a tight core. Raffles Place and Marina Bay Grade A rents are about $11.87 psf per month, up 1.5% on the quarter, and occupancy there is 97.4%. CBD-wide vacancy is 5.9%, the lowest in ten quarters. Expansion by AI and technology companies is the main driver named in the report.
2. Next: the year-end read. The fourth-quarter figures will show whether the climb continues. JLL forecasts roughly 4% rental growth for the full year, while Knight Frank sees 3% to 5% and expects the higher end. Forecasts are estimates and can be revised.
3. Then: occupiers widen their search. When the centre is crowded, some companies consider suburban regional centres for teams that do not need a downtown address. This is a general pattern, not a promise of demand for any building. Woods Square is one example of a decentralised option, developed by Far East Organization with Far East Orchard and Sekisui House in Woodlands, District 25.
4. Through 2027: limited new supply. Both firms describe supply as constrained until then, so relief for space-hungry tenants is not expected to arrive quickly. Woods Square is already complete, with TOP in February 2020, on a 99-year leasehold that began on 15 July 2014.
5. Beyond: fit over headlines. The building is an integrated strata office and retail project, with strata offices from 549 sqft and SOLO loft offices of about 721 to 1,453 sqft. Woodlands MRT interchange is a five-minute covered walk. The location page maps the surroundings for those judging commute and access.

The pattern to keep in mind is that rent data describes a market and does not decide any individual purchase or lease. Leasehold tenure, unit size, transport links and running costs all deserve equal weight with the headline numbers.

Anyone planning around these milestones should check each quarterly release rather than rely on one reading. Conditions can change, and figures reported today may look different in six months.

One more habit is worth building: compare like with like. CBD Grade A rents describe premium towers in the core, while suburban strata offices serve different occupiers with different priorities such as team size, staff commute, and cost of running the space. A company weighing both routes should list which features are essential, then test each option against that list rather than against the headline rent alone.

It is also sensible to look at the building itself. Check the remaining lease term on a leasehold property, how the mall and offices interact, what the loft layout allows, and how a floor plate suits your team. Advisers can help with the numbers, but the site visit still matters.

Finally, timing. No forecast can tell you the right moment to commit. What the data offers is a way to frame the decision: a market that has tightened, a supply pipeline that looks thin, and a range of expert views. Combine that with your own budget, headcount plans and appetite for risk, and revisit the picture each quarter as new releases arrive.

Lastly, keep an eye on the language used in market reports. Words such as "constrained" or "tightest" describe conditions at a moment in time. They are not instructions to act. A cautious reader notes what changed, what stayed the same, and what remains unknown, then decides whether the new information alters an existing plan or simply confirms it.

General information only, not financial or legal advice.

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Source: EdgeProp Singapore. This article is independent commentary; Woods Square is not affiliated with the parties mentioned.