OFFICE MARKET OVERVIEW Existing Office Supply Islandwide office stock totalled 62.0 million sq ft as at 4Q 2023. The CBD Core accounted for 31.6 million sq ft (or 51.0%) of islandwide office stock, of which 14.8 million sq ft was Grade A CBD Core office space. CBD Fringe and Decentralised Area office stock stood at 15.7 million sq ft (or 25.4%) and 14.7 million sq ft (or 23.6%) respectively. Approximately 0.3 million sq ft of office stock was completed in 2023. Major developments completed included the office component of Surbana Jurong Campus (211,600 sq ft) and One Holland Village (60,600 sq ft) in the Decentralised Area. Office Stock Ownership The top 10 owners of office stock in Singapore are corporations, developers and REITs. As of 2023, CICT, which owned 7.2% of total office stock NLA13, is the largest owner of office stock. This was followed by Keppel REIT (4.1%) and Suntec REIT (3.7%). Out of the total office stock, the top 10 owners owned approximately 34.6%, while other developers, funds and insurance houses, strata-titled owners and others owned the remaining 65.4%. The CapitaLand Group, which includes CICT, CapitaLand Development, CapitaLand Investment and CapitaLand Ascendas REIT, owned approximately 9.0% of islandwide office stock. Future Office Supply Between 2024 and 2026, islandwide new office supply is projected at 3.6 million sq ft. Out of this total pipeline supply, the CBD Core accounts for 40.9%, while the CBD Fringe and Decentralised Area account for the remaining 30.6% and 28.6% respectively. Average annual gross new office supply from 2024 to 2026 is approximately 1.2 million sq ft, higher than the last fiveyear historical average annual completions (2019-2023) of 0.8 million sq ft. Approximately 2.3 million sq ft of office supply will enter the market in 2024. This includes IOI Central Boulevard Towers (1.3 million sq ft) in CBD Core which was initially slated to complete in 2023. Other developments due for completion in 2024 include Odeon 333 (39,800 sq ft) in the CBD Fringe, as well as Labrador Tower (696,800 sq ft) and Paya Lebar Green (320,900 sq ft) in the Decentralised Area. In the CBD Fringe, Keppel South Central (613,500 sq ft), initially planned for completion in 2024, and the redevelopment of Shaw Tower (435,000 sq ft), are slated for completion in 2025. Meanwhile, Solitaire on Cecil (196,500 sq ft) is expected to enter the CBDCoremarket in 2026. Previously targeted for completion in 2025, Newport Tower in the CBD Fringe has been delayed till beyond 2026. 13 Based on CBRE’s total islandwide office stock. Source: CBRE Singapore, 4Q 2023 ESTIMATED SHARE OF PRIVATE OFFICE STOCK BY OWNER Source: CBRE Singapore, 4Q 2023 ISLANDWIDE FUTURE OFFICE SUPPLY (2024 – 2026) CapitaLand Integrated Commercial Trust 7.2% Keppel REIT 4.1% Suntec REIT 3.7% Singapore Land Ltd 3.6% M+S Pte Ltd 3.2% GuocoLand Ltd 3.0% Hongkong Land 2.7% Mapletree Pan Asia Commercial Trust 2.5% UOB Group 2.4% City Developments Ltd 2.3% Others 65.3% 2.5 2.0 1.5 1.0 0.5 0.0 NLA (million sq ft) 2026 2025 2024 0.2 1.3 0.04 1.0 1.0 CBD Core CBD Fringe Average Annual Pipeline Supply (2024-2026) Decentralised Area Historical Average Annual Completions (2019 – 2023) 0.8 mil sq ft 1.2 mil sq ft 100 CAPITALAND INTEGRATED COMMERCIAL TRUST INDEPENDENT MARKET REVIEW
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