A Struggling Business Park Deals a Blow to Singapore's Regional Hub Ambitions.

CITIGROUP Inc. 197329691 C; J.P. Morgan Chase & Co.

Changi Business Park in Singapore, once a thriving alternative business hub, is now facing significant vacancies and struggles. The park, located just outside the city's Central Business District, has seen its overall vacancy rates double in the past three years to nearly 40%. Global tech and finance layoffs, as well as the shift to remote work during the pandemic, have contributed to the park's decline. Companies like IBM and UBS have reduced their presence in the park, and buildings are now being offered at discounted rates to attract tenants. The challenges faced by Changi Business Park reflect broader issues in Singapore's commercial real estate market, and the park's location and concentration of technical operations have also raised concerns among locals. The park's struggles come in contrast to the bustling downtown area, where prime office rents are at a 15-year high. Despite the difficulties, there have been some recent successes, such as Julius Baer Group relocating staff to a larger space in the park. However, the search for tenants to fill the remaining vacant areas continues. [Extracted from the article]

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