The Gazania is 3 MRT Stops to the revamped & transformed Paya Lebar.
Pharmaceutical firm Bayer will shift its main office to Paya Lebar Quarter (PLQ) at the end of the year, joining other companies which have taken up space in the mixed-use development such as JLL and SMRT.
The Business Times understands that Bayer – which is moving from OCBC Centre – is taking up 31,000 square feet at PLQ. Bayer did not respond to queries from BT by press time.
CBRE is believed to have brokered the deal.
Already at PLQ is SMRT, which has shifted its headquarters from North Bridge Road to PLQ’s Tower 3 where it has taken up 97,000 sq ft, while JLL is said to be taking space in Tower 1. BT has also reported previously that IWG’s Spaces will have a 52,000 sq ft co-working space at PLQ, while Great Eastern has leased 125,000 sq ft in Tower 3 and NTUC Income, 55,000 sq ft in Tower 2, respectively.
Property consulting group CBRE is taking up some 32,000 square feet at Tower 3 and will commence operations there on April 29. Its CBD office at 6 Battery Road is closing for renovation but will re-open from July.
Meanwhile, developer Lendlease is rolling out its own flexible workplace brand, Csuites, which is located at Tower 3.
“The three office buildings in Paya Lebar Quarter are more than 75 per cent leased or under advanced negotiations,” said a PLQ spokesperson in response to queries from BT, declining to share tenants’ names.
Lendlease is behind the 4-hectare mixed-use development, which comprises close to one million square feet of work space in three grade A towers, a shopping mall with a total retail area of 340,000 square feet and a 429-unit residential development.
Darren Belcher, JLL’s head of corporate real estate and workplace (Asia Pacific), said: “Our relocation to PLQ enables us to deliver on our global sustainability ambitions as well as provide the latest design, technology and experience supplementing our existing showcase offices across the region.”
In late Q3 of this year, JLL will be integrating its offices across Singapore at PLQ, which will be home to its regional headquarters. It is taking up two floors in PLQ, but will also retain a presence in the Central Business District.
Cushman & Wakefield’s head of research (Singapore and Southeast Asia), Christine Li, reckons that decentralisation activity may increase owing to high rents in the CBD, as this enables cost-conscious occupiers to reap substantial savings by shifting their non-client facing functions to the city fringe or suburbs.
She said: “Given that immediate supply in the CBD area such as 9 Penang Road and Funan has been pretty much taken up before the completion, decentralised office locations such as Paya Lebar Quarter start to gain traction in light of elevated Grade A CBD rents, which is expected to grow by another 9 per cent in 2019.”
Ms Li noted that the Grade A CBD rent rose by 2.3 per cent to S$10.61 per square foot per month (psf/mo) in Q1, outstripping the high of S$10.43 psf/mo seen in 1Q2015.
Factors propping up rental growth this year include improving market sentiment from a more dovish US Fed, a possible US-China trade deal and demand from co-working spaces.
“There could also be future activity by Chinese insurers, who are looking to grow their presence in Singapore,” she added.
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