Tenants are consolidating to optimise their usage of office space to generate cost savings and shadow space has increased, primarily from the technology and financial services sectors, he adds.
Changi Business Park (CBP) and International Business Park (IBP) may be “hollowing out” with “sub-par” occupancy rates as companies downsize, but UOB Kay Hian Research analyst Jonathan Koh is undeterred, maintaining “overweight” on Singapore REITs (S-REITs) with a few select picks.
The work-from-home (WFH) arrangement has “cast a dark shadow” over business parks, says Koh in a June 25 note. “Business park properties, being pseudo-offices, have been the most disrupted by WFH and hybrid work arrangements.”
