Robust net absorption in Q1 2026, up 19% y-o-y

• Quarterly net absorption in Q1 reached 1.21 million sq ft. The western quadrant in the Suburbs submarket had the highest share of net absorption, followed by the SBD.
• Gross leasing in the quarter reached a historic high of 3.11 million sq ft, up 66% q-o-q and 0.5% y-o-y. The strong leasing momentum was driven by flex operators and BFSI occupiers.

The city recorded no new completions in Q1 2026

• No new completions were recorded in Q1 2026 due to construction and approval delays. However, Q2 2026 is set to see substantial project additions.
• With no new supply recorded, vacancy in Q1 2026 declined to 17.1%, down 130 bps q-o-q.

Rental values remained range-bound in Q1 2026

• Overall gross rents were up marginally by 0.1% q-o-q and 2% y-o-y. At a submarket level and on a y-o-y basis, gross rents in the Suburbs increased the most, while the CBD submarket saw slower rent appreciation during the quarter.
• Capital values rose 1.2% q-o-q and 5.6% y-o-y, with yields declining marginally across all submarkets.

Outlook: strong supply pipeline and pre-leasing to support strong market forecasts for 2026

• By the end of 2026, approximately 10 million sq ft of supply is expected to be added, creating significant demand from occupiers seeking Grade A office spaces across all submarkets.
• Q1 2026 saw robust pre-commitments, and this momentum is expected to continue through the year, pushing both net absorption and gross leasing to new peaks.