Offices see priorities shifting towards wellness, accessibility and facilities
This year has seen a wave of new gyms entering the Central Business District (CBD) in Singapore such as boutique gym Anarchy Club, with 3,800 sq ft space at 61 Robinson Road; Sparkd, a 1,570 sq ft brain-body fitness gym at Cecil Building; S30, a strength-training gym at 137 Cecil Street; and Lab Studios, a pilates, barre and yoga studio at Stanley Street.
The fitness onslaught continues with Sphere Gym, a 4,800 sq ft training and recovery gym at Cecil Building, and Revolution spin studio which just opened at Frasers Tower.
Luke Moffat, Regional Managing Director and Head of CBRE Advisory and Transaction Services for Asia Pacific, commented that office occupiers are increasingly prioritising wellness and sustainable features like gyms, end-of-trip facilities, nursery rooms, massage rooms, F&B, and good-quality air filters for their employees’ overall well-being.
Residents of Great World City Condo will have a variety of activities to enjoy. From taking a stroll along the Singapore River to taking part in water sports, the amenities and surrounding landscape ensure that life at the condo remains exciting and fulfilling. They can relax and refresh at the nearby park, explore the nightlife, or just kick back and enjoy the breathtaking views of the skyline.
CBRE’s 2023 Asia Pacific Office Occupier Sentiment Survey also revealed that and access to public transport (71%), carpark (50%), flexible office space (36%), F&B options on site (62%) and fitness facilities (45%) are some of the key features factored into companies’ decision-making process.
Moffat further reiterated that a building with a high ESG (environmental, social and governance) rating, when it comes to wellness, energy efficiency and sustainability, would be more saleable to investors when the time comes.
The survey findings were consistent with that of last year where 69% of office workers placed greater importance on their work environment than before the pandemic.
Asia Pacific has experienced a higher rate of return to the office than the United States and Europe with an average office utilisation rate of 65%.
Despite the substantial demand for green-certified office buildings, few occupiers are willing to pay the Premium, with less than 25% responding that they would, and only 10% indicating that they’d be willing to pay at least 10%.
Therefore, Moffat opines that owners should invest to bring existing Grade-B buildings up to current standards as tenants will naturally be drawn to newer buildings with better views, specifications and amenities.
The strong office rental trend in the Central Region has seen median rental contract dates increase by 6.7% in 2Q2023, driven by the tight vacancy level in prime office buildings which matches the levels of 2Q2020.
CBRE expects vacancy levels and office rentals to come under pressure in 2H2023 given the large prime commercial development, IOI Central Boulevard Towers, which is projected to receive its temporary occupation permit by 1Q2024. To date, an estimated 40% of the 1.26 million sq ft of office space and 30,000 sq ft of retail and F&B space at Marina Bay has been committed.
Overall, the flight to new-build and flight to green remains a prominent trend, nevertheless, expansionary attitude is still somewhat subdued amongst occupiers in the current challenging economic climate.