Allianz is understood to have leased about 78,000 square feet (sq ft) at the new Shaw Tower in Beach Road, in the biggest leasing deal signed so far at the redeveloped project.

The group is expected to relocate from CapitaSky at 79 Robinson Road, where it is said to occupy about 88,000 sq ft. Its lease there will end in March 2027.

The group, one of the world’s leading insurers and asset managers, declined to comment when approached by The Business Times.

Market watchers said that the 11 per cent space reduction is not surprising, as relocating to newer premises provides occupiers with an opportunity to remove clutter and optimise their space requirements – for instance, by catering for some degree of hybrid and collaborative spaces as part of future-proofing the workspace.

Allianz is said to have clinched an attractive long-term deal at Shaw Tower. It is expected to pay a lower rental than the S$12 or higher per square foot (psf) a month gross effective rent estimated by some observers, had it renewed its lease in CapitaSky.

The new Shaw Tower – a redevelopment of the old property with the same name – looks just about completed and is expected to receive its temporary occupation permit soon.

Allianz’s lease in the building is understood to have been brokered by JLL.

The project is owned by Shaw Towers Realty, which sits under The Shaw Foundation Hong Kong. Lendlease was roped in to handle the development, project and asset management, based on information on the company’s website.

The space that Allianz has leased at Shaw Tower is understood to be in the low zone of the 32-storey building, which has about 435,000 sq ft of Grade A office space.

The development also offers about 15,700 sq ft of retail/F&B offerings, including a rooftop restaurant.

The project houses about 21,500 sq ft of community-centric facilities.

Allianz is the biggest tenant signed up so far at Shaw Tower. Other tenants secured include payments technology firm Adyen – which is said to have inked a lease for two floors totalling about 39,700 sq ft – and flexible workspace operator The Great Room, with two floors adding up to about 36,600 sq ft.

Pharmaceutical company Sanofi-Aventis Singapore will also be a tenant at Shaw Tower. It will be relocating from the neighbouring South Beach Tower.

Over at the 29-storey CapitaSky, the space that Allianz will vacate has been garnering strong leasing interest, BT understands.

This is in the light of a tight supply of large office spaces, including over contiguous floors, in the Central Business District Grade A market.

CapitaSky is 70 per cent owned by CapitaLand Integrated Commercial Trust : C38U 0%; CapitaLand Open End Real Estate Fund holds the remaining 30 per cent. The building received its Temporary Occupation Permit in April 2020.

What’s buoying Singapore office market

Shaw Tower will be the only major Grade A office completion in Singapore in 2026.

CBRE Research forecasts the next five-year (2026 to 2030) average islandwide office supply completion of about 770,000 sq ft per annum to be around 40 per cent below the past 10-year (2016 to 2025) historical average of 1.28 million sq ft per annum.

Based on Cushman & Wakefield’s (C&W) CBD Grade A office basket, the gross effective average monthly rental value rose 1.4 per cent quarter on quarter to S$11.36 psf in the first quarter of 2026.

The group forecasts the full-year increase to be in the 4 to 7 per cent range – outpacing the gains of 2.4 per cent in 2025 and 1.7 per cent in 2024 – underpinned by limited new completions in 2026 and 2027. C&W’s CBD Grade A basket includes the Tanjong Pagar to Marina Bay/Raffles Place stretch, City Hall/Marina Centre, Beach Road/Bugis area and Orchard Road.

“A potential increase in development cost amid elevated energy prices is expected to support current rental levels even as leasing demand moderates,” said Wong Xian Yang, C&W’s research head for Singapore and South-east Asia.