The Central Business District (CBD) of Singapore’s one of the most extensive new commercial properties construction, IOI Central Boulevard Towers, is taking more than six years to complete.
The white site at Central Boulevard near Marina Bay, where IOI’s Singapore division is building IOI Central Boulevard Towers, was acquired in November 2016 for S$2.57 billion. With about 1.26 million square feet (sq ft) of grade A office space and 30,000 sq ft of retail space, the new development, which might finish in 2023, will consist of a 48-story tower, a 16-story tower, and a seven-story platform.
Anchor tenants for different commercial properties
Commercial properties: Office anchor tenants
It is reported that Amazon could occupy 369,000 square feet of office space distributed across 11 floors of the IOI Central Boulevard Towers.
The board and management of IOI would have undoubtedly felt relieved to have secured Amazon as a significant anchor tenant. A new office project’s risk is significantly reduced by leasing space to a large office tenant before it is finished.
The acquisition of an anchor tenant will boost the leasing activity for a newly constructed office complex.
Smaller companies will be enticed to occupy space in a structure chosen as the headquarters of a significant international organisation. It may be wise for an office landlord to strike a balance between attracting large anchor tenants and slowly filling vacant space by attracting several users with modest needs for commercial properties.
Commercial properties: Retail anchor tenants
Mall owners have historically enjoyed attracting large anchor tenants to extended leases with affordable commercial properties rental rates. Leasing to a big-space user like a department store, supermarket, or movie theater has advantages, including increasing occupancy and taking up space in less accessible mall areas.
A long-term lease with favorable conditions for an anchor tenant that enhances a building’s brand could negatively impact an asset’s profitability, particularly if rental prices are rising.
I am Tyson Yuk, the founder of the blog Commercial Realty Singapore. With over 15 years of experience, my forte is in the commercial and luxury property line. With my blog, I aim to educate, advise and share tips and tricks with potential property buyers and investors to help them make successful property ventures.
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