Renting an office space in Paya Lebar seems like a promising venture, given its proximity to town and superb accessibility. The demand for prime offices in the country’s downtown central business district has raised rental prices significantly.
CBRE Research said that Grade A rents in the area rose to 4.1% between April and June 2018. A caveat, however, involves fewer leasing inquiries depending on the type of project.
Paya Lebar Quarter is an example of why you should consider investing in the commercial property market. Despite weaker interest from prospective tenants for other properties, CBRE said that a dozen office units on the eighth floor of the mixed-use development recently went for sale.
The 13-floor building’s strategic location serves as one key advantage. Paya Lebar Quarter stands next to the Paya Lebar MRT Interchange station and being close to transportation links means better connectivity for occupants and prospective clients. The property is also just 10 minutes away from the CBD and a mere six train stations away from the Raffles Place MRT.
CBRE’s Moray Armstrong said that while leasing inquiries waned during the second quarter, office vacancies remained low. This led property landlords to charge higher rental prices, which did not bother flexible space operators and technology companies. Insurance firms also contributed to an increase in demand.
Some insurers that have taken up space include Great Eastern and NTUC Income. Both companies recently signed a deal to occupy offices at the upcoming Paya Lebar Quarter.
Investors and prospective tenants should weigh their options first before buying any kind of property. You should consult with real estate agents and inquire about real estate developers that have a good track record of delivering commercial developments.