Offices see priorities shifting towards wellness, accessibility and facilities

The demand for fitness and wellness amenities are growing rapidly due to a growing focus on living a healthy lifestyle. Luke Moffat, regional managing director and head of CBRE advisory and transaction services, Asia Pacific, attests to this, citing examples such as good-quality air filters, massage rooms, and fitness facilities included in the sorts of facilities that occupiers are looking for in a building. Acknowledging this, there is an increasing trend of new gyms opening up in the Central Business District (CBD) of Singapore, including Anarchy Club, Sparkd, S30, Lab Studios, and Revolution spin studio.

Moffat also discuss the effect ESG-certified buildings have on the investment scene. It is beneficial for both the occupiers and the investors if the building is high rated in terms of wellness, energy efficiency and sustainability. He states that it makes the property “much more saleable” and that it “goes beyond the green factor”.

A survey conducted by CBRE – the 2023 Asia Pacific Office Occupier Sentiment Survey – found that accessibility to public transport, car parks, sustainable building features, shared meeting space, and F&B options are among the most important factors that occupiers are looking for in an office space. This year’s survey was consistent with last year’s, with 69% of office workers placing greater importance on their work environment than before the pandemic. The survey also noted that companies are aiming for their staff to be mainly at the office, with 32% aiming for that in 2023, up from 24% in 2022.

Although demand for ESG-certified buildings is high, only a small percentage of occupiers are willing to pay a rental premium for such properties. Moffat adds that the premium would be more significant if one compared a green-certified Grade-A building with an older Grade-B building that is not green-certified.

In Singapore, office rents in the Central Region have increased for the seventh consecutive quarter since 3Q2021, and the URA office rental index increased by 2.3% q-o-q in 2Q2023. CBRE attributes the higher pace of rental increase in 2Q2023 to the prevailing tight vacancy levels in prime office buildings, with a vacancy rate of 9.2% in 2Q2023.

The nearby Bukit Panjang Bus Interchange is well-connected to shopping mall and institutions such as West Mall, Hillion Mall, Bukit Panjang Plaza, Ngee Ann Polytechnic, and much more.The surrounding amenities of Senja Residences EC ensures a more convenient lifestyle. Shopping for groceries will be fuss-free with the nearby Bukit Panjang Market and Food Centre. The nearby Senja-Cashew Community Centre offers a variety of activities for the residents. The various parks located at Senja Road such as Bukit Panjang Park, Zhenghua Park, and Bukit Timah Nature Reserve are all within a stone’s throw of Senja Residences EC.

In 2H2023, rents may come under pressure due to the addition of a significant prime new commercial development, IOI Properties Group’s IOI Central Boulevard Towers, which topped out on Aug 28. Right now, 40% of its net lettable area has already been taken up.

Generally speaking, according to CBRE’s 2023 Asia Pacific Real Estate Market Outlook Mid-Year Review released in August, flight to new-build and flight to green will remain prominent trends. Despite this, new buildings will take longer to fill up as office occupiers retain a prudent attitude towards portfolio planning amid the challenging macroeconomic environment.