The development of Marina Bay Financial Centre (MBFC) has helped many real estate developers recover from the plummeting industry for the past three years. This project of three major developers (Hongkong Land, Keppel Land and Cheung Kong (Holdings)/Hutchison Whampoa has allowed for the further development of the office rental industry of the nation. MBFC has a total land area of 360 hectares wherein 80 hectares of which are apportioned for the business district of the area.
The industry was actually performing well until Lehman Brothers Holdings collapsed in 2008. It produced an effect which led to global crisis affecting the euro-zone and other key regions. The post-crisis effect of the event caused Singapore’s office rental industry to acquire a vacancy rate of 14.5 % in the third quarter of 2010. During the crisis, rentals for prime- offices surged down S$9.55 per square foot every month during the first quarter. This was actually considered to be the lowest if compared with other periods in 2010 as explained by CBRE Group Inc.
Recently, the landlords of Singapore officer spaces start expanding their tenant bases. They include those lessors whose majority of tenants are bank companies. The recovery of the industry from the crisis led to this consideration of the owners of office and commercial properties.
According to the globally brokers- Cushman & Wakefield Inc. and CBRE Group Inc.- landlords would be happy know that there is a possible increase in the rentals of prime buildings in the country within the year. Singapore is 19th among the nations with highest office rentals according to CBRE.
Lately, the country started developing as a hub for commodities. It has the biggest trading market of oil catering for companies like Exxon Mobil Corporation., Chevron Corporation and BHP Billiton Ltd. It also ranks next to Tokyo, Japan in terms of foreign- exchange. Other international companies found in Marina Bay Financial Centre include Lynx Energy Trading, McGraw Hill Financial Inc., Clifford Chance, Aryzta AG and Software AG.
However, some of the latest tenants in MBFC are afraid that they might not be able to compensate the current rental of the area unlike its earlier tenants which include banks and brokers.