Newmark Report: Resilient Singapore Office Demand Backed by Steady Economic Growth

, /PRNewswire/ -- Newmark has released a study, led by its Valuation & Advisory and Leasing & Brokerage teams, on the Singapore office leasing market. The report considers broader economic factors and ongoing trends among occupiers, projecting a positive year ahead for office leasing activity and continued moderate rental growth amid limited supply and stable economic growth on the island in 2025.

"Increasing office-using employment and declining office supply should help to better balance the market's supply and demand over the next 12 months, supported by steady economic growth and export growth," said Chris Carver, MRICS, MSISV, AAPI, Executive Managing Director and Head of Asia-Pacific Valuation & Advisory. "With a limited development pipeline and sustained need for high-quality office space, we anticipate that rental growth will remain positive in 2025 and occupiers will continue to focus on workplace efficiency and employee experience, driving interest for prime spaces."

Among the key 2024 takeaways:

• Office vacancy rose slightly to 9.4% in 2024, largely attributable to the addition of the 1.25-million-square-foot IOI Central Boulevard Towers to the office supplyⁱ.
• Singapore's CBD Grade A office rents grew approximately 2% in 2024 and are projected to increase at a moderate pace of around 2% in 2025. This growth is attributed to the limited supply of new office space in the CBD and sustained demand for premium office spacesⁱⁱ.
• Flight to Quality remains a key driver of office relocations, as businesses prioritize talent acquisition and retention.
• Service sectors, such as information and communications, financial and professional services, all grew in 2024 and are projected for further growth in 2025, which should in turn drive additional office demandⁱⁱⁱ.

Read the full report here and visit https://www.nmrk.com/insights to explore more Newmark Thought Leadership.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended December 31, 2024, Newmark generated revenues of over $2.7 billion. As of December 31, 2024, Newmark and our business partners together operated from approximately 170 offices with more than 8,000 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark

Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

ⁱ Source: URA (Private Sector only) & Newmark Research

ⁱⁱ Source: URA & Newmark Research

ⁱⁱⁱ Source: Ministry of Manpower (MOM)