More F&B Options and Greenery as Demand for Premium CBD Offices Grows

With Grade A vacancy dropping to 4.1 per cent and rents climbing steadily, CBD office landlords are differentiating their buildings through lifestyle-oriented upgrades rather than competing solely on price. City Developments Limited (CDL) is spending S$25 million to revamp the lobby and common areas of Capital Tower on Robinson Road, introducing curated F&B concepts, co-working lounges, and indoor green walls designed to create a campus-like experience for tenants.

Keppel REIT has similarly upgraded One Raffles Quay with new dining tenants and wellness amenities, while other Raffles Place landlords have introduced childcare facilities and rooftop fitness decks. These investments reflect a post-pandemic shift in tenant expectations, where proximity to food, wellness, and social spaces is now a key leasing decision factor alongside rental rates and floor-plate efficiency.

Singapore Land Group is on track to complete The Clifford, a 35-storey premium office tower at Raffles Place, by 2028. The development will offer approximately 245,000 sq ft of leasable Grade A office space and is expected to incorporate extensive greenery and F&B programming at ground level. Its arrival will add quality stock to a market that has seen limited new completions in the core CBD over the past five years.

Further south, Newport Plaza at the Greater Southern Waterfront represents the next frontier of office development, with plans for mixed-use commercial space that integrates waterfront dining, recreation, and transit connectivity. These upcoming projects signal that developers are designing new office buildings around an amenity-first philosophy from the outset, rather than retrofitting older assets.

The steady rent increases over three consecutive years, combined with tightening vacancy, point to a landlord-favourable market that shows no immediate signs of softening. As global firms continue to consolidate their Asia-Pacific headquarters in Singapore, demand for quality office space with comprehensive amenity ecosystems is likely to intensify, supporting further rental growth in the near term.

For investors, the combination of rising rents and limited new supply in the core CBD creates a compelling case for office asset appreciation. Buildings that have invested in lifestyle upgrades are commanding stronger tenant retention rates and rental premiums over their less-upgraded competitors, reinforcing the importance of capital expenditure in maintaining asset competitiveness.