Offices see priorities shifting towards wellness, accessibility and facilities

This year has seen a surge in the number of gyms opening in Singapore’s Central Business District (CBD) such as Anarchy Club, a 3,800 sq ft space located on the fifth floor of Robinson Road, and Sparkd, a 1,570 sq ft brain-body fitness gym with its own floor in the same building. In July, S30, a strength-training gym, opened up on the second floor of Cecil Building on Cecil Street, whilst Lab Studios, a pilates, barre and yoga studio, opened its doors on the second floor of a shophouse on Stanley Street back in February. Sphare Gym, a 4,800 sq ft training and recovery gym at Cecil Building, opened in 2021, as did Revolution spin studio at Frasers Tower.

This Zion Road Condois one of the few new launches that offers vis-à-vis functionality and convenience, and makes for an ideal home. It is encircled by an array of amenities and facilities, such as banks, dining outlets, and boutique shops. Zion Road Condo is also conveniently situated next to the iconic Zion Riverside Food Centre. Thus, it offers a perfect balance of convenience and nourishment.

Luke Moffat, regional managing director and head of CBRE advisory and transaction services, Asia Pacific, explains that fitness and wellness facilities are becoming increasingly popular as part of a healthy lifestyle: “Features like gyms, end-of-trip facilities, nursery rooms, massage rooms, good F&B or good-quality air filters are the sort of things you need to have for the well-being of the staff.”

Moffat further states that the premium for a green-certified Grade-A building over an older, non-certified Grade-B building would be higher. According to a CBRE survey, sustained office occupancy levels post-pandemic have led to an increase in demand for higher-quality office accommodation; with 69% of office occupiers placing greater importance on their working environment than before, and 32% aiming for mainly office-based staff in 2023. Additionally, Moffat notes that hybrid working will remain popular as it allows workers flexibility.

Despite the clear demand for green buildings, CBRE reports that few occupiers are willing to pay a premium. Of those willing to pay higher rent, the premium is less than 5%, with only 10% willing to pay a premium of 10% or higher. Singapore’s URA office rental index has increased for seven consecutive quarters since 3Q2021, as tight market conditions cause prime buildings to experience median rental contract increases of 6.7% q-o-q in 2Q2023, compared to 0.2% q-o-q the previous quarter.

CBRE warns, however, that rents may come under pressure in 2H2023 due to the addition of a sizable new commercial project; IOI Properties Group’s IOI Central Boulevard Towers, which topped out on Aug 28th and is expected to receive its temporary occupation permit in 1Q2024. Competition from new-builds, alongside expansionary sentiment being subdued, may lead to some drop in premium, as excessive stock levels remain a concern.