Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 22 Mar 2013
6 sub-regional centres outside the CBD are already attracting tenants.
According to UOB Kay Hian, the government has increased the supply of office space outside the CBD in its efforts to locate jobs near population centres and to spur the development of sub-regional centres.
These include: a) Jurong Lake District - the largest commercial and regional centre outside the city centre, b) One-North - hot spot for the biomedical sciences, infocomm technology, media, physical sciences and engineering sectors;
c) Paya Lebar Central - good location for businesses that prefer to be located on the fringe of the city, d) North Coast Innovation Corridor (Woodlands, Sembawang, Seletar) - innovative economic corridor buzzing with ideas, creative designs and new technologies;
e) Southern Waterfront City (extending from Marina Bay along the water from Keppel Channel, and f) Changi Business Park, Tampines Regional Centre and industries at Lorong Halus will be expanded.
Impact of decentralisation to fall on older offices. Although higher islandwide office supply will curb rental upside, we believe that the impact of the new supply will fall more on Grade-B and older offices as tenants shift to take advantage of more efficient floor plates and newer office amenities.
For example, Shell and Procter and Gamble, which both signed new leases at The Metropolis in 1Q13, have occupied their current offices in the periphery of the CBD for over 10 years.
Although the government has released office land supply in the Jurong Lake District and also along Paya Lebar Central, the new sites incorporate retail and office commercial components, and may even incorporate hospitality or residential components to provide integrated mixed-use developments where communities
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