Space Taking Up – 31,000 sq ft Office Space
Bayer pharmaceutical, a Life Science company is joining the list of companies such as SMRT and JLL who have moved their offices to Paya Lebar Quarter (PLQ).
The company already plans to move its main office to the mixed-use development by the end of the year.
As per media reports the company would be taking up 31,000 sq ft of space at the PLQ when it moves its office from OCBC Centre though the company hasn’t officially confirmed the move yet. The deal is believed to have been brokered by CBRE.
SMRT is among the largest occupants at PLQ having shifted their headquarters from earlier North Bridge Road.
They are occupying Tower 3 and have taken 97,000 sq ft of space. JLL is also expected to move into Tower 1.
Other businesses that are planning to move into this location include IWG’s Spaces who are taking 52,000 sq ft for their co-working space, Great Eastern is taking up 125,000 sq ft in Tower 3 while 55,000 sq ft has been leased to NTUC Income in Tower 2.
CBRE one of the leading property consulting groups in Singapore is also taking up 32,000 sq ft in Tower 3 and is expected to start its operations from the new facility on April 29.
It’s currently location at 6 Battery Road is up for a renovation project and would open in the month of July. At the same time Lendlease is planning to launch Csuites, their own flexible workspace from Tower 3 at PLQ.
Though the spokesperson at PLQ has declined to reveal names of its tenants, it said that 75% of the space at the three towers have already been taken up for lease or are in advanced stage of negotiations.
The 4-hectare Paya Lebar Quarter has been developed by Lendlease and includes approximately 1 million square feet in work space spread across the three Grade A Towers.
Apart from this there is 340,000 square feet of retail space and a 429-unit residential component.
Head of Corporate Real Estate and Workplace for Asia-Pacific region at JLL Mr Darren Belcher said that the company’s move to PLQ will allow them to access latest technology, design and experiences which will be in addition to their existing showcase offices and this is in line with their global sustainability ambitions.
The company aims to integrate all its offices across Singapore in PLQ by Q3, 2019 which will house its regional headquarters. They are taking up two floors at PLQ but at the same time also plan to retain their presence in Singapore’s CBD.
According to Head of Research, Singapore and Southeast Asia at Cushman & Wakefield, Christine Li the on-going move among businesses of shifting their non-client facing operations to city fringes is a part of the conscious efforts reduce costs owing to high rents in the Central Business District.
This decentralisation has been on the rise in the recent months she reckons. Li further adds 9 Penang Road and Funan two of the office spaces in current supply in CBD have already been booked before their completion and this is further encouraging businesses to look at Paya Lebar Quarter and similar locations in order to cut costs as Grade A space in CBD is likely to see marginal growth of 9% in 2019.
She pointed out to the fact that there was a 2.3% increase in the rents in Grade A space in CBD which has touched a high of S$10.61 psf per month in Q1, 2019 going ahead of the previous high of S$10.43 back in Q1, 2015.
Market sentiments have improved in the recent months with US Fed expected to be friendlier, the demand for co-working spaces growing and improvement in US-China ties.
She concluded by saying that she expects Chinese insurers to try and increase their footprint in Singapore which will result in more business activity.