"These are some of the largest office leasing deals in 2016, and we continue to be in active negotiations with many other multinational companies who are looking at securing office spaces over multiple floors," said Kemmy Tan, chief executive officer of M+S, which is a joint venture between Malaysia's Khazanah Nasional and Singapore's Temasek Holdings.
Marina One is M+S's flagship development in Singapore's Marina Bay area. The development remains on track for completion in 2017.
Moray Armstrong, managing director, Singapore, advisory & transaction services at CBRE, noted that market leasing activity in the office sector has gathered "particularly strong momentum" focused on the new upcoming developments.
"It certainly provides encouragement that anchor tenants are now confident enough to make these large commitments. With a strong pipeline of leasing deals coming through, we believe market rents in the new developments are finding support levels," he noted.
The 3.67 million sq ft Marina One includes Marina One East and West Towers, two prime Grade-A office towers of approximately 1.88 million sq ft; 1,042 units of city residences; and 140,000 sq ft of retail at the retail podium.
Marina One Residences has sold over 90 per cent of released units for the first tower since its launch in 2014. The next phase of the residential units will be launched when the development receives its Temporary Occupation Permit (TOP) in 2017.
On the office front meanwhile, the signed leases, together with those under documentation, bring Marina One's take-up to over 550,000 sq ft.
Mr Armstrong noted that the leasing success at Marina One may well point to improved fortunes for the office market beyond 2017 when the supply wave has passed. That being said, there is still a significant quantity of new available space coming onstream, and secondary space in a few existing buildings.
"In past down market cycles, the finalisation of anchor tenant deals is often a lead indicator that the market may be stabilising. Too early perhaps to call a return to growth; but should underlying economic conditions improve, then the Singapore office market could rebound far earlier than many had assumed," he said.
Source: Business Times, 22 Jun 2016