AMAZON has signed a lease for about 369,000 sq ft at IOI Central Boulevard Towers, The Business Times (BT) understands.

The space that the multinational tech giant is taking comprises both office floors of 70,000 sq ft each in the development’s podium and all 9 office levels (of 25,400 sq ft each) in the East Tower.

The project, expected to be completed in October 2023, will also have another 40 office floors totalling around 887,000 sq ft in the West Tower.

In all, the project, located next to Downtown MRT station, will have about 1.26 million sq ft net lettable area of offices and 30,000 sq ft of retail space. It is being developed by Bursa Malaysia-listed IOI Properties Group.

JLL is understood to have brokered Amazon’s lease but it declined to comment.

BT previously reported that Amazon leases about 45,000 sq ft at One George Street, 80,000 sq ft at Capital Square and 100,000 sq ft at Asia Square Tower 1. It also occupies space in the WeWork facility in Manulife Tower on Cross Street.

Some industry observers suggest Amazon may be keeping its options open on its existing space, noting that the group’s business and headcount here are still growing.

Talk in the market is that at IOI Central Boulevard Towers, Amazon may be paying a gross effective monthly rental of around S$10 psf. IOI Properties is said to be targeting to achieve about S$12-14 psf a month average rental for its project. As the maiden big-name anchor tenant, Amazon is expected to enjoy a preferential rental rate, say analysts.

Colliers’ head of tenant representation for Singapore, June Chua, said: “IOI Central Boulevard Towers is a very attractive option for a large occupier as the development will offer contiguous premium office space in a strategic location in the heart of the CBD. It also has direct access to the Downtown MRT station.”

“Future tech demand could be weighed down by tightening financing conditions. The rise in interest rates has roiled equity markets, resulting in a steep devaluation of tech companies. Some major tech firms have also announced lay-offs. As a result, demand for Singapore office space from tech companies could cool over the short term. 

Wong Xian Yang of Cushman & Wakefield

IOI Properties is developing the project through its Singapore-incorporated subsidiary Wealthy Link, which clinched the Central Boulevard site at a state tender in late-2016 for S$2.57 billion or S$1,689 per square foot per plot ratio.

Office leasing activity at Guoco Midtown along Beach Road has also been gathering momentum.

Tenants signed up so far are said to include ConocoPhillips, Boehringer Ingelheim, BASF, Vitol and Swiss Re. Floor plates in the project’s office tower, which is expected to be completed in November this year, range from 29,500 sq ft to 30,000 sq ft.

Meanwhile, ByteDance is expected to occupy 4 of the 7 floors formerly leased to JPMorgan at Capital Tower along Robinson Road. The 4 floors add up to over 80,000 sq ft.

Blackstone expanding

At Marina Bay Financial Centre, Blackstone is doubling its space. It will be relocating from Tower 2, where it occupies about 17,000 sq ft, to Tower 1, where it has leased 36,000 sq ft.

In its latest Singapore office market update, Cushman & Wakefield said that the tech sector drove about 25 per cent of new office leasing deals in the CBD in H1 2022, second only to financial firms, which accounted for about 40 per cent of new leasing deals during the period.

Its Singapore research head, Wong Xian Yang, said: “However, future tech demand could be weighed down by tightening financing conditions. The rise in interest rates has roiled equity markets, resulting in a steep devaluation of tech companies. Some major tech firms have also announced lay-offs.

“As a result, demand for Singapore office space from tech companies could cool over the short term. Nonetheless, well-capitalised and growing tech firms could still drive pockets of demand, given strong long-term growth prospects for the sector.”