April 2015

Singapore | Hong Kong

The OfficeA review of the Singapore office market

Index Page

02 Rental Table - Asking Rents

03 Top Prime Offices

04 Financial District - Upper Mid-Range/Prime

05 Financial District - Economy/Mid-Range

06 Value for Money / Edge of CBD

07 Orchard Road

08 Decentralised / Business/Commercial

Corporate Locations (S) Pte Ltd License No. L3010044A

T +65 6320 8355 / contact@corporatelocations.com.sg / www.corporatelocations.com.sg

The Gatew

ay

All new developments have been particularly successful

Overall CBD vacancy rate is around 4.25%

Supply of new office space over next 18 months will be limited

Rentals grew by 9.5% in 2014 and are expected to advance further in 2015

100 Beach Road, #17-07 Shaw Tower, Singapore 189702

T +65 6320 8355 www.corporatelocations.com.sg

‘Finding Office Space For You, With You’ Disclaimer The information in this publication should be regarded as a general guide only. Whilst every care is taken in it preparation, no representation is made or responsibility accepted for its accuracy or completeness. The rentals mentioned are neither asking rentals nor rentals agreed by property owners, but only represent the writers views on estimated rentals and is intended as reference only.

Raffles Place / Marina Bay

6 Battery Road $9.50/$15.0020 Collyer Quay $12.00 - $14.0055 Market Street $8.50Asia Square Tower 1 $18.00Asia Square Tower 2 $18.00Bank of China Building FullBharat Building $8.00Bank of Singapore Centre $10.50Chevron House $9.50Clifford Centre $8.50Income@Raffles FullMaybank Tower FullMBFC Tower 1, 2 & 3 TBCOCBC Centre $9.50+OCBC Centre East $9.80Ocean Financial Centre $15.00One Finlayson Green FullOne George Street $12.00One Marina Boulevard FullOne Raffles Place Tower 1 $11.00 - $13.50One Raffles Place Tower 2 $10.50 - $13.50One Raffles Quay North Tower $15.00OUE Bayfront $16.00RB Capital Building $8.50Republic Plaza 1 $11.00 - $13.00Republic Plaza 2 FullRoyal Group Building FullRoyal One Phillip $10.00Singapore Land Tower $11.00Straits Trading Building $10.50The Arcade $7.70UOB Plaza 1 $13.50UOB Plaza 2 $12.00 Robinson Road / Shenton Way

4 Robinson Road $8.006 Raffles Quay $8.50 - $9.5060 Robinson Road Full 71 Robinson Road $9.0080 Robinson Road Full 120 Robinson Road $8.00135 Cecil Street $8.00137 Telok Ayer Street $8.00146 Robinson Road $5.50150 Cecil Street $6.50158 Cecil Street $8.80AIA Tower FullASO Building FullBangkok Bank Building FullCapitaGreen $16.00 - $18.00Capital Square $11.00Capital Tower POACecil Court $6.50China Square Central $9.50City House $7.80 - $8.50CPF Building $7.30Far East Finance Building FullFar Eastern Bank Building $6.50

Finexis Building FullGB Building $7.00Grace Global Raffles FullGreat Eastern Centre $10.00Hong Leong Building $9.50Keck Seng Tower $7.00 - $7.50PIL Building $8.00PWC Building $9.50Prudential Tower $10.50Robinson 77 $8.50Robinson 112 $7.50Robinson Centre $8.50Robinson Point FullSamsung Hub $10.00SGX Centre $9.00SIF Building FullShenton House $5.00 - $6.00The Globe FullThe Octagon $6.00 - $6.50 Tokio Marine Centre $8.50Tong Eng Building Full Orchard Road / Dhoby Ghaut

50 Scotts Road Full51 Cuppage Road $8.50+182 Clemenceau Ave $7.50Albert Complex FullBurlington Square FullFaber House $9.50Fortune Centre &5.80Forum $8.00Goldbell Towers $9.50Haw Par Centre $7.00Haw Par Glass Tower $4.80International Building $8.50Liat Towers $10.00Manulife Centre $8.80Ngee Ann City $12.00Orchard Building FullPalais Renaissance $9.20Park Mall $7.80Regency House $8.00Shaw Centre $8.00Shaw House $9.00Singapore Pools Building FullSunshine Plaza $7.00Tanglin Shopping Centre $6.50The Atrium@Orchard FullThe Bencoolen $7.00The Heeren $12.00The Paragon FullThong Teck Building FullTong Building $8.00TripleOne Somerset $9.50+VisionCrest Commercial $11.00Wheelock Place $15.00Wilkie Edge FullWinsland House 1 & 2 $13.00Wisma Atria $12.00

Rental Guide - Summary of Asking Rates

* Light industrial space

Contact Our Senior Team Members

Tanjong Pagar

78 Shenton Way $7.8079 Anson Road $8.00ABI Plaza FullAmara Corporate Tower TBCAnson Centre FullAnson House $9.50AXA Tower $9.50Fuji Xerox Towers $7.50 - $8.50Hub Synergy Point FullInternational Plaza $6.50 - $7.50Jit Poh Building $6.50Keppel Towers $7.00Mapletree Anson $9.00MAS Building FullSt. Andrew’s Centre FullSouthpoint FullSpringleaf Tower $8.00 - $8.50Tower Fifteen $7.50Twenty Anson $9.00 City Hall / Marina Centre / Beach Road

11 Beach Road $7.0030 Hill Street Full67 High Street FullBugis Junction Towers FullCentennial Tower $15.50Millenia Tower $15.50Odeon Tower $9.50One Raffles Link FullParkview Square $8.50Peninsula Plaza $6.50Raffles City Tower $12.00Shaw Tower $6.40 - $6.70South Beach Tower $13.00Stamford Court $8.00Suntec Towers 1-3 $9.00 - $12.00Suntec Towers 4-5 $10.00 - $12.00The Adelphi $7.20The Concourse $8.50The Gateway East and West $8.50 Chinatown / River Valley Road

Central $9.80Central Mall $5.50 - $7.80Chinatown Point $6.00 - $6.50Great World City East $7.80Great World City West $7.80King’s Centre $7.00Royal Merukh S.E.A. Building FullUE Square $8.00Valley Point $8.00

Edge of CBD

Alfa Centre $7.00Boon Siew Building FullCentral Plaza $7.50Goldhill Plaza FullNewton 200 FullNovena Square A $9.50Novena Square B FullRex House FullSLF Building $5.00The Metropolis Tower 1 & 2 $8.50United Square $9.00 West / Others

Alexandra Point $7.50Alexandra Techno Park* $4.50Harbourfront Centre $7.20 - $7.80Harbourfront Tower 1 $7.80Harbourfront Tower 2 $6.20 - $7.50Harbour Link TBC International Business Park (Jurong)* $4.50 JEM $6.20Keppel Bay Tower $9.00Mapletree Business City* Full New Tech Park* FullPacific Tech Centre* $3.55PSA Building $7.50 - $8.00PSA Vista $4.80Singapore Science Park I, II & III* $4.50Sime Darby Business Centre* FullTech Point* $3.20The Signature* $3.70 - $4.00UE BizHub East* $4.50Westgate $6.50 - $6.90 East

Abacus Plaza $5.50AIA Tampines TBCChangi Business Park* $4.50Cisco Centre II FullCPF Tampines Building $5.40KA Centre* $3.20KA Place* FullNTUC Tampines Junction $5.80NTUC Tampines Point $5.50Parkway Parade FullSingapore Post Centre $6.50Tampines Concourse $5.50Tampines Grande $6.20Tampines Plaza FullTechlink* $3.20Technopark@Chai Chee* $3.50Tech View* $3.20

Douglas Dunkerley Director CEA Reg No. R030779G

T +65 6391 5200

ddunkerley@corporatelocations.com.sg

Edmund Goh Director CEA Reg No. R030777J

T +65 6391 5201

edmundgoh@corporatelocations.com.sg

Darren Ng Senior Manager CEA Reg No. R022103E

T +65 6391 5209

darrenng@corporatelocations.com.sg

Ellynn Yap Sr. Marketing Executive CEA Reg No. R050491F

T +65 6391 5212

ellynnyap@corporatelocations.com.sg

John Lee Sr. Marketing Executive CEA Reg No. R016701D

T +65 6391 5211

johnlee@corporatelocations.com.sg

All rents quoted are asking rental rates and subject to change without prior notice

Top Prime Offices 03*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

One Raffles Quay North TowerOUE Bayfront Collyer Quay

Asia Square Towers 1 & 2 12 Marina View, New Downtown

Units from 3,000 – 19,666 sq ft

MBFC Tower 3 Marina Bvld, New Downtown

$15.50 - $16.00+ psf*Units from 1,824 – 136,000 sq ft

CapitaGreen Market Street, Raffles Place

$14.00 - $15.00 psf*

Units from 4,000 – 40,000 sq ft

$13.00+ psf*

Units from 4,650 – 21,711 sq ft

Ocean Financial Centre Raffles Place

$12.00+ psf*

Units from 3,100 – 29,000 sq ft

$14.00 psf*

Units from 3,896 – 11,668 sq ft

One Raffles Place Tower 2

$11.50 - $12.00 psf*

Units from 2,300 – 100,000 sq ft

$14.00 - $15.00+ psf*

World Class Office

Amentities include 5 star hotel, leisure centre, food court & link to MRT

Average floor size 30,000 - 35,000 sq ft

Top quality office tower on edge of Raffles Place

Average floor size 22,000 sq ft

New tenants include Cargill Group, Bordie & Cie, SK Energy and Jardine Lloyd Thompson

Asia Square Towers 1 & 2One Raffles Place Tower 2

Ocean Financial Centre

Marina Bay Financial Centre Tower 3

Financial District - Upper Mid-Range / Prime 04

Demand All new developments have been particularly successful

Demand for new office space in Singapore has been robust over the last twelve months, with the new developments both inside and outside the CBD being particularly successful. Outside the CBD, Westgate in Jurong has leased well with engineering and infrastructure firm CPG taking some 83,000 sq ft and other new tenants include Lockheed Martin. Aperia Building in Lavender secured Audi/Volkswagon and Roche Diagnostics as their first major tenants earlier last year and more recent tenants include Experian, Shimizu Corporation and BBC Worldwide.

Inside the CBD South Beach Tower, which only secured TOP in February 2015, is now over 80% leased with only a few low-rise floors remain available. New tenants to commit here include Sanofi Aventis (40,000 sq ft), Facebook (80,000 sq ft), Lego (60,000 sq ft), TMF Group (16,000 sq ft), KCS Corporate Services (9,000 sq ft), Bain & Co (18,000 sq ft), Canpotex (from 30 Hill Street) and Astra Oil (from Raffles City Tower). CapitaGreen is also over 70% committed, only a few months after receiving TOP in December 2014. A host of high profile tenants have secured space in this development and the latest MNC’s choosing this project include Twitter (22,000 sq ft),

Lloyds of London (74,000 sq ft), SK Energy (20,000 sq ft), ACE Insurance (38,000 sq ft), and Apple taking up an estimated 35,000 sq ft.

The dust is now settling from the decanting of Equity Plaza and these tenants chose a wide variety of locations to move to, with many picking Shenton/Tanjong Pagar. Obayashi Corporation moved to 79 Anson Road, Hanwa Singapore moved to AXA Tower, Gateway Law & Blackmagic Design moved to Robinson Point, Prime Partners leased a floor in Income@Raffles and Everest Reinsurance moved to One Raffles Place Tower 1.

Other buildings in the financial district have seen healthy activity. Spencer Ogden has leased a whole floor at One Raffles Place Tower 2. Itron Metering Systems leased a floor at 55 Market Street (from Goldbell Towers), Qatar Airways leased space in Samsung Hub (from The Paragon), AvePoint Singapore moved into Ocean Financial Centre (from Centennial Tower), and Asia Environment Holdings moved to GB Building (from OCBC Centre). H&CS Holdings has purchased a whole floor in Springleaf Tower (from Winsland House). Equinix Asia Pacific has leased a whole floor in China Square Central.

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

On the edge of the CBD, K Line Logistics has leased a floor at ABI Plaza and Baker Tilly / Teo Fong Loong has leased a whole floor (15,000 sq ft) in Parkview Square. Outside the CBD The Metropolis in Buona

Vista has leased further space to American Eagle Tankers (from Keppel Bay Towers) and Beiersdorf (from United Square). Canon Singapore and Electrolux have moved into Galaxis.

South Beach Tower Beach Road

Units from 3,000 – 15,600 sq ft

$10.00+ psf*

Republic Plaza 1 Raffles Place

Units from 1,200 – 13,000 sq ft

$10.80+ psf*

Suntec City Twrs 1- 4 Temasek Boulevard

Units from 1,050 – 12,045 sq ft

$9.50 - $10.50 psf*

Bank of Singapore Centre Raffles Place

Units from 3,000 – 27,000 sq ft

$9.50 psf*

Capital Tower Robinson Road

Units from 10,000 – 65,000 sq ft

$10.00 psf*

OCBC Centre Chulia Street / Raffles Place

Units from 1,119 – 6,283 sq ft

$10.00+ psf*

UOB Plaza II Raffles Place

Units from 1,316 – 7,621 sq ft

$11.00+ psf*

Tenant Moving to > Size sq ft Moving from

Lloyds of London CapitaGreen < 74,000 sq ft Asia Square Tower 1ACE Insurance CapitaGreen < 38,000 sq ft Parkview SquareTwitter CapitaGreen < 22,000 sq ftFacebook South Beach < 80,000 sq ft 158 Cecil StreetTMF South Beach < 18,000 sq ft 158 Cecil StreetSanofi Aventis South Beach < 40,000 sq ft 6 Raffles QuayKCS Corporate Services South Beach < 9,000 sq ft City HouseLego Singapore South Beach < 60,000 sq ft MBFC Tower 3Bain & Co South Beach < 18,000 sq ft OUE BayfrontElectrolux Galaxis < 30,000 sq ft Jackson SquareCanon Singapore Galaxis < 50,000 sq ft Keppel Bay TowersObayashi 79 Anson Road < 7,000 sq ft Equity PlazaBBC Worldwide Aperia Building < 6,000 sq ft Shaw TowerPrime Partners Income @ Raffles < 9,000 sq ft Equity PlazaCentral Provident Fund Novena Square < 210,000 sq ft CPF BuildingEquinix Asia Pacific China Square Central < 12,000 sq ft Equity Plaza

Summary of Recent Leasing Transactions

Bank of Singapore Centre

Republic Plaza 1

Financial District - Economy / Mid-Range 05*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

Units from 2,271 – 20,000 sq ft

135 Cecil Street

$7.00+ psf*

Units from 1,765 – 30,000 sq ft

158 Cecil Street

$8.30 psf*

6 Raffles Quay Shenton Way

Units from 1,593 - 40,000 sq ft

$7.50 - $9.00 psf*

78 Shenton Way Tanjong Pagar

Units from 1,130 – 9,989 sq ft

$7.20 psf*

Mapletree Anson Anson Road

Units from 3,000– 20,669 sq ft

$8.50 psf*

SGX Centre 1 Shenton Way

Units from 8,000 – 19,666 sq ft

$8.50 psf*

71 Robinson Road

AXA Tower Shenton Way

Units from 1,750 – 14,766 sq ft

$8.50 psf*

Robinson 77 Robinson Road

Units from 1,496 - 36,630 sq ft

$7.50 psf*

Units from 3,300 – 10,215 sq ft

$8.50 psf*

Robinson 77

71 Robinson Road

AXA Tower

158 Cecil Street

Value for Money / Edge of CBD 06

Supply The overall CBD vacancy rate is around 4.25%

The vacancy rate for Raffles Place has increased to around 6.3%, but this is mainly due to the completion of CapitaGreen (700,000 sq ft). The vacancy rate for the New Downtown/Marina Bay area has come down to around 4.5% with Asia Square Tower 2 filling up. Vacancy rates in Shenton Way/Tanjong Pagar are around 7.0% having been helped by many of the tenants from Equity Plaza relocating into this area, yet there have also been many large relocations from this district. Supply of new office space over the next 18 months will indeed be limited

The Beach Road area has an approximate vacancy rate of 3.5%. Both City Hall/Marina Centre and Orchard Road districts have very low vacancy rates of between 1.4% and 1.8%, because activity/movement in this area is limited and South Beach has leased out so well. The overall vacancy rate for Grade A offices in the CBD is around 4.25%.

The supply of new office space over the next 18 months will indeed be limited, but then later in 2016 two massive new schemes, namely Marina One (1,880,000 sq ft) and Guoco Tower (850,000 sq ft) will form a large part of the estimated 3 Million sq ft of new space expected to come on line then. In the meantime there will be good quality space available in the secondary market as a result of so many relocations to either South Beach or CapitaGreen. In Raffles Place, CapitaGreen still has a good choice of available space and One Raffles Place Towers 1 & 2 continue to offer a wide selection of sizes in a 100% prime location, at reasonable rates. OCBC Centre has a wide choice of smaller units on offer. In the New Downtown/Marina Bay area, Asia Square Towers 1 & 2 still have a fair choice of space and MBFC Tower III & Raffles Quay North Tower have good opportunities available. In Shenton Way / Tanjong Pagar the buildings

Parkview Square North Bridge Rd, Bugis

Shaw Tower Beach Road The Gateway Beach Road, Bugis

The Concourse Beach Road, Lavender

*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

Tenant Location Size Completion Date Guoco Tower Tanjong Pagar 850,000 sq ft Jun 2016Marine One New Downtown 1,875,000 sq ft Sep 20165 Shenton Way Shenton Way 280,000 sq ft Sep 2016DUO Beach Road / Bugis 570,000 sq ft Dec 2016SBF Centre Robinson Road 340,000 sq ft Jan 2017

Future Developments

Units from 1,900 – 15,600 sq ft

$8.00 psf*

Units from 1,568 – 4,833 sq ft

$6.30 psf*Units from 1,000 – 11,880 sq ft

$7.50 psf*

Units from 1,119 – 50,000 sq ft

$8.00 psf*

UE Square Clemenceau Avenue

Units from 1,346 – 19,548 sq ft

$7.00 psf*

Keppel Towers Hoe Chiang Road

Units from 1,000 – 11,840 sq ft

$6.00 psf*Units from 1,000 – 18,000 sq ft

CES Centre (San Ctre) Chin Swee Road

$6.00 psf*

with the widest choice include AXA Tower, Mapletree Anson, 6 Raffles Quay, 135 Cecil Street and 158 Cecil Street.

In the Orchard Road area 51 Cuppage Road and Triple One Somerset have a large variety of units on offer. On the edge of the

CBD some of the best opportunities can be found in Shell House, Parkview Square, The Gateway and The Concourse. Outside the CBD the Harbourfront/Alexandra district has the widest choice in buildings such as Keppel Bay Towers, HarbourFront Centre, Alexandra Point, PSA Building and 456 Alexandra Road.

UE Square

Parkview Square

Orchard Road 07*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

Market Forecast

Rental rates predicted to advance at slower rate between 5% - 6% in 2015 Rates for prime Grade A buildings now average around $10.50 per sq ft. In Raffles Place rates range from $9.00 per sq ft to $13.00 per sq ft, with most quality buildings commanding rates around $10.00 to $11.00 per sq ft effective. The average effective rate in the New Downtown / Marina Bay area is now around $13.25 per sq ft. Most buildings in the Shenton Way / Tanjong Pagar area average around $7.50 to $8.50 per sq ft. City Hall / Suntec City area averages around $10.00 per sq ft and Beach Road has an average rate around $7.50 per sq ft.

Average Effective Rates by District

Rentals grew by 9.5 % in 2014 and we expect rates to advance further in 2015, but at a more modest rate of around 5% - 6%. The net absorption in 2015 is predicted to be around 800,000 sq ft, but this is likely to increase to over 1 Million sq ft in 2016 as a healthy take up of space in the two major new schemes Marina One and Guoco Tower coming on line at this time is expected.

Some larger users are already considering their plans for 2016 with these two schemes in mind, but in the meantime there is still a reasonable choice of space in both the newer schemes as well as secondary space as a result of so many relocations.

Rentals grew by 9.5% in 2014

Those tenants who are more budget conscious will be drawn to some of the excellent opportunities that offer good value for money on the edge of the CBD, and those needing to be in a prime location will be attracted to the high net efficiency rate of the newer developments. Overall the anticipation of the new supply in 2016 will bode well for the future of the office market, as additional supply will increase stability in the market avoiding damaging rental surges.

Units from 10,728 sq ft

Haw Par Centre Clemenceau Avenue

$6.80 psf*

51 Cuppage Road Orchard

Units from 1,270 – 21,054 sq ft

$7.50 psf*

Visioncrest Penang Road

Units from 1,000 – 14,454 sq ft

$8.00+ psf*

Winsland House 1 Penang Road

Units from 1,351 – 22,350 sq ft

$10.50 psf*

Winsland House 2 Penang Road

Units from 1,242 – 8,784 sq ft

$10.50 psf*

TripleOne Somerset Somerset Road

Units from 1,184 – 25,468 sq ft

$8.50+ psf*

Shaw Centre Orchard Road

Units from 1,000 – 3,772 sq ft

$7.50 psf*

Shaw House Scotts Road

Units from 1,000 – 3,055 sq ft

$8.50 psf*

Park Mall Penang Road

Units from 1,010 – 3,961 sq ft

$7.50 psf*

Palais Renaissance Orchard Road

Units from 1,000 – 4,510 sq ft

$8.70 psf*

Guoco Tower Tanjong Pagar Size: 850,000 sq ft Height: 64 storeys Office floors up to level 38 (residential above) Average floor plate: 25,000 - 29,000 sq ft Est. completion: Jun 2016

Marina One Marina View (New Downtown) Size: 1,880,000 sq ft Height: 30-storeys (twin towers) Average floor plate: 30,000 sq ft Est. completion: Sep 2016

Raffles Place $10 - $11.00 New Downtown / Marina Bay $13.25Shenton Way / Tanjong Pagar $7.50 - $8.50City Hall / Marina Centre $10.00Beach Road $7.50Orchard Road $8.00 - $9.00Fringe CBD $6.00 - $8.50

Net absorption in 2015 is predicted to be 800,000 sq ft, but this is likely to increase to over 1 Million sq ft in 2016 as a healthy take up of space in the two major new schemes (Marina One and Guoco Tower) is expected.

Keppel Bay Towers Harbourfront

Units from 2,799 – 37,534 sq ft

$8.50 psf*

The Metropolis Tower 2 Buona Vista

Units from 4,273 – 25,000 sq ft

$7.80 psf*

$3.00 psf*Units from 4,544 – 12,165 sq ft

Techpoint Ang Mo Kio

$3.50 - $4.00 psf*Units from 1,539 – 27,943 sq ft

The Signature Changi Business Park

$3.20 psf*Units from 5,080 – 52,743 sq ft

Technopark@Chai Chee

Acer Building International Business Park, Jurong

Creative IBP International Business Park, Jurong

Island East

223@Mountbatten

Island Central

Aperia Kallang Avenue

$4.00 psf*Units from 3,509 – 6,566 sq ft

$4.00 psf*Units from 5,274 – 22,238 sq ft

$5.00 psf*Units from 1,161 – 25,000 sq ftUnits from 5,000 – 24,108 sq ft

$5.50 psf*

$5.80+ psf*Units from 5,000 – 24,327 sq ft

JEM Jurong Gateway Road

Units from 1,570 – 33,000 sq ft

Westgate Gateway Drive

$6.00+ psf*Units from 3,451 – 20,000 sq ft

Nucleos Buona Vista

$4.60 psf*

Units from 1,200 – 12,648 sq ft

Alexandra Point Alexandra Road

$6.50 psf*$6.70 - $7.50 psf*Units from 1,000 – 11,928 sq ft

Harbourfront Centre Maritime Square

$4.20 psf*Units from 15,000 – 28,000 sq ft

Island West

Business / Commercial Space

Buona Vista / Island West

$7.20 psf*Units from 1,614 – 16,167 sq ft

PSA Building Alexandra Road

UE Biz Hub Changi Business Park

Decentralised Offices 08*All rents quoted are estimated target effective rates subject to negotiations and are not the landlords quoted figure

Harbourfront / Alexandra District