Offices see priorities shifting towards wellness, accessibility and facilities

This year has seen an influx of gyms settling into the Central Business District of Singapore, with a wide range of specialties. Class-based and strength training boutique gym Anarchy Club tackles 3,800 square feet of space on the fifth floor of the 61 Robinson Road complex. Sparkd focussed on a “brain-body” approach to fitness and has 1,570 square feet of room on the same floor.

S30 recently opened a strength-training gym on the second floor of the Cecil Building at 137 Cecil Street, while Lab Studios opened a pilates, barre, and yoga studio on the second floor of a shophouse on Stanley Street in February.

Residents of this condominium will find almost everything they need in the nearby waterfront district, from top-notch restaurants and cafes to bustling malls and cinemas. Additionally, the condo is located near to many of the key business districts in Singapore. This is an ideal place for Marina Gardens Lane Condo to live and work. For those of you wanting convenient living in the CBD, Marina Gardens Lane Condo is the perfect place. With easy access to major transport links and amenities within reach, you can be sure you will be able to get around quickly and comfortably.

The fitness trend isn’t all about the newcomers– Sphere Gym has been a 4,800 square feet training and recovery gym attraction at Cecil Building since last year. Revolution spin studio also recently opened, debuting at Frasers Tower in 2021.

Luke Moffat, regional managing director and head of CBRE advisory and transaction services for Asia Pacific, believes the fitness and wellness trend to be associated with a healthy lifestyle. He explains that modern offices need to concern themselves with “features like gyms, end-of-trip facilities, nursery rooms, massage rooms, good F&B or good-quality air filters” to take care of their staff.

CBRE’s 2023 Asia Pacific Office Occupier Sentiment Survey, conducted in June, found that what people look for in an office vary, but include “accessibility to public transport (71%), carpark (50%), sustainable building features and operations (48%), shared meeting space (45%), flexible office space (36%), F&B options on site (62%) and fitness facilities (45%)”.

Furthermore, Moffat states that “wellness has an even more significant impact than sustainability”, and having a high ESG rating can help a building gain within the market, leading to a much more saleable property.

The Survey also showed that the majority of companies are still hoping for a return to the office with 32% stating their intention to do so in 2023, up from 24% in 2022. Even though this is the case, Moffat believes hybrid working, “in one form or another”, is here to stay, “it gives employees some flexibility”.

When it comes to green-certified buildings, the research showed that few occupiers would be willing to pay a higher rent for such properties, with few than 25% showing willingness to do so. The highest premium would be less than 5%, while only 10% would go as high as 10%.

This is mainly because “43% of Grade-A office buildings were green-certified as of 2022”, according to CBRE. But Moffat suggests that if an old Grade-B building is compared to a new green-certified Grade-A building, then “the premium would be more significant”.

Vacancy rates have been dropping in Singapore despite the pandemic, with Category 1 office space (as a proxy for the prime CBD) seeing a 6.7% q-o-q increase in 2Q2023 rental contracts. CBRE attributes this to the tight vacancy levels and the fact that most occupiers would prefer to renew their lease at a higher rate due to “high fit-out and funding costs” as well as “space optimisation”.

The upcoming completion of IOI Properties Group’s IOI Central Boulevard Towers at the Marina Bay could affect rents in the second half of this year. The “Grade-A office development, with 1.26 million sq ft of office space” is expected to receive its temporary occupation permit in 1Q2024, with “about 40% of [its] net lettable area” committed so far.

CBRE has stated that “flight to new-build and flight to green will remain prominent trends” in the Asia Pacific region. People will have plenty of upgrading options due to the “20-year high of 18%” regional vacancy rate in the first half of 2023, but CBRE still believes that “occupiers will retain a prudent attitude towards portfolio planning” until the challenging macroeconomic environment and shorter negotiation times improve.