Grade A office fears unfounded

SINGAPORE (Sept 7): Healthy interest for new office buildings is allaying fears over Grade A office rents crashing and that new office supply will not be absorbed, according to a Monday sector note by DBS Vickers.

Analyst Mervin Song notes that media reports about Guoco Tower in Tanjong Pager reaching pre-commitment levels of 70% as well as Marina One hitting 35% pre-commitment levels indicate the market is bottoming out.

Singapore office REITs have so far been successful at preventing their tenants from being lured away by the upcoming office supply, Song notes.

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