Singapore CBD Grade A Office Rents Climb 1.0% in Q3

Rental Growth Continues

Singapore's central business district (CBD) Grade A office market recorded a 1.0% quarter-on-quarter increase in gross effective rents during Q3 2026, according to JLL Research. This latest rise brings the total rental growth for the first three quarters of 2026 to 2.8%. This pace mirrors the growth observed over the same period in 2025.

Concurrently, overall CBD office vacancy rates declined to their lowest point in 10 quarters, largely due to robust take-up of space in the Marina Bay area.

Tech Firms Drive Demand

Technology and artificial intelligence (AI) companies are a primary source of this heightened demand. OpenAI is reportedly in advanced discussions to lease approximately 120,000 sq ft across five floors at the newly completed Shaw Tower, representing a significant expansion from its current location at CapitaSpring.

Additionally, Sierra AI and Manus AI have reportedly secured space at Keppel South Central. Michael Glancy, JLL's country CEO for Singapore and Southeast Asia, noted that AI and technology firms are actively acquiring space despite ongoing macroeconomic uncertainties, supported by Singapore's status as a regional technology hub.

Economic Outlook Strengthens Market

The economic backdrop for office demand has strengthened following Singapore's government upgrading its 2026 gross domestic product (GDP) growth forecast. The revised projection now stands at 4.5%–5.5%, up from an earlier estimate of 2%–4%. JLL Research maintained its forecast for CBD Grade A rents to increase by about 4% over the full year in 2026. The firm also projects cumulative rental growth of approximately 15% through to 2030.

Competition for Scarce Space

The limited availability of large-format office spaces has intensified competition among occupiers for prime Grade A units. This scarcity has consequently narrowed the rental gap between larger and smaller office units. For businesses, this trend implies continued upward pressure on occupancy costs, particularly for significant footprints in central locations.

Companies planning substantial expansion in Singapore's CBD should prepare for a competitive leasing environment and potentially higher long-term rental commitments, driven by sustained tech sector demand and a positive economic outlook.