Bloomberg describes low occupancy at Changi Business Park as a setback to Singapore’s regional hub aspirations

The occupancy rate at Changi Business Park in Singapore has been a topic of concern, with a recent Bloomberg report highlighting the area’s high vacancy rate of nearly 40%. This has raised questions about Singapore’s ambitions to become a regional tech and finance hub, as Changi Business Park was once considered a prime location for multinational companies.

The 71.07-hectare business park, completed in 2012, was designed as a mixed-use development with office buildings, a retail shopping mall, and hotels. However, factors such as increasing work-from-home options and global layoffs in the technology and finance industries have contributed to the rapid emptying out of the area.

Major companies like Citigroup, JP Morgan, and IBM have office spaces at Changi Business Park, but some have significantly reduced their footprint. IBM, for example, has gone from occupying 12 floors to just two. To attract new tenants, some units are being offered at discounted rates, such as a 3-for-2 deal where renters get a year of rent free if they sign a three-year lease.

In addition to these challenges, the business park has also faced criticism for its distance from other areas and its high concentration of foreign workers, particularly from India. This has led to concerns among citizens about the city-state’s reliance on foreign labor to meet business needs.

Despite these issues, CapitaLand Ascendas REIT has clarified that its properties at Changi Business Park have higher than average occupancy rates and a well-diversified portfolio. The situation at the business park continues to evolve as companies adapt to changing work trends and economic conditions.