Where Value is Being Created Now

The primary opportunity for corporate occupiers in Commercial Real Estate Singapore is no longer concentrated in scarce Prime Grade A towers, but increasingly within strategically repositioned secondary office stock.

With Prime CBD rents remaining elevated and vacancy in core precincts like Raffles Place tightening to 5.3%, occupiers face a dilemma: pay premium rates for standard glass towers or seek smarter alternatives. This shift has accelerated the repositioning of older buildings through brown-to-green retrofits, amenity enhancements, and operational modernisation.

These assets present a compelling third path: near-Grade A performance, stronger ESG alignment, and more flexible commercial terms—without the cost burden typically associated with new prime developments. As supply constraints persist through the next cycle^[1], repositioned secondary stock has emerged as a core battleground for cost efficiency, talent outcomes, and long-term leasing strategy.

The Drivers Behind the Trend

Evolving Employee Demands

The momentum behind the repositioning trend has been fuelled by a fundamental realignment of how we use space. Beyond a desk, employees now demand an experience that rivals the comfort of home. This has led to the persistent adoption of "hub-and-spoke" strategies, where companies might keep a leaner HQ but utilize high-quality, repositioned spaces in city-fringe locations. This trend drives demand for upgraded buildings with "flex" amenities, helping occupiers optimise their leased footprint.

Supply Constraints and Occupier Options

Singapore continues to face a "Supply Cliff." The scarcity of developable land in the core CBD limits new options. Waiting for a new build is often not an option due to timeline constraints. Repositioned stock fills this gap, offering "new-feel" inventory in established locations much faster than ground-up developments can be delivered.

Sustainability as a Corporate License to Operate

Sustainability has become a practical constraint, not a branding exercise. For occupiers with Net Zero commitments, leasing decisions increasingly determine whether corporate targets are achievable at all. Newly retrofitted buildings—upgraded under the Mandatory Energy Improvement (MEI) regime—allow tenants to meet governance and reporting requirements while benefiting from lower operating costs driven by improved energy performance.

What "Repositioned" Means for the Tenant

Comprehensive Upgrades (Better Air, Better Atmosphere[1] )

A "repositioned" asset isn't just a painted facade. It implies a modernization of the building's "lungs"—the MEP (Mechanical, Electrical, Plumbing) systems. This is critical for post-pandemic occupiers who prioritize Indoor Air Quality (IAQ). Furthermore, these projects often reconfigure dense, dark layouts into open, collaborative spaces with "hotel-style" amenities (gyms, cafes, and communal lounges), creating environments that employees actually want to visit.

Adaptive Re-use (Unique Corporate Identity)

For creative, tech, or lifestyle firms, standard corporate offices can feel stifling. Adaptive re-use projects—converting former industrial or heritage assets into offices—offer high ceilings, unique architecture, and a strong brand narrative. These assets allow companies to differentiate their physical identity from competitors who remain in generic towers.

The Value Proposition for Commercial Tenants

Cost Efficiency vs. Quality

The strongest case for choosing repositioned stock remains financial efficiency. While Prime Grade A assets offer prestige, they come with the highest rental costs. Repositioned assets allow tenants to secure Grade A operational standards at Grade B rental rates. This allows real estate directors to reduce occupancy costs over the next leasing cycle without sacrificing employee comfort.

Agility and Terms

Landlords of repositioning projects are often more flexible than institutional owners of Prime towers. In an effort to stabilize their newly renovated assets, they may offer more attractive lease incentives, such as longer rent-free periods or contributions toward tenant fit-out costs.

ESG Alignment

Leasing a repositioned building is often a greener choice than leasing a new build, due to the lower embodied carbon involved in retrofitting an existing structure versus building a new one. This narrative aligns perfectly with tenants tracking their Scope 3 emissions, offering a powerful story for their 2026 sustainability reports.

Table 1: Occupier Selection Matrix (2026 Outlook)

Challenges and Considerations

While the value proposition is strong, companies leasing repositioned spaces should be aware of specific risks:

• Disruption Risk: Buildings undergoing phased renovation ("live" retrofitting) may present noise, dust, and lift access issues. Strong lease clauses are required to protect quiet enjoyment.
• The Superficial Upgrade Risk: Technical due diligence is necessary to confirm that enhancements go beyond cosmetic lobby renovations and include critical systems like HVAC and lifts for operational reliability.[2] 
• Zoning and Usage: Adaptive re-use assets (e.g., shophouses or industrial conversions) require verification that intended business activities comply with URA guidelines to avoid licensing issues later.

The Smart Occupier’s Choice

The secondary office market in Singapore has ceased to be the "runner-up" option; it is now a dynamic sector for smart corporate real estate strategy. The era of repositioning allows tenants to bypass the high costs of the Prime market while still securing sustainable, high-tech, and employee-centric workspaces. Identifying the right repositioned asset is key to balancing cost control with workplace quality.

Looking for office space that balances budget, branding, and sustainability? Contact the Savills Commercial Leasing team for a curated list of Singapore’s best repositioned office opportunities.

¹ Savills Research: Singapore Office Briefing Q3 2025 https://pdf.savills.asia/asia-pacific-research/singapore-research/singapore-office/singapore-office-briefing-q3-2025.pdf

² Ministry of Manpower: Tripartite Guidelines on Flexible Work Arrangement Requests
https://www.mom.gov.sg/employment-practices/good-work-practices/flexible-work-arrangements

³ Building and Construction Authority: Mandatory Energy Improvement (MEI) Regimehttps://www1.bca.gov.sg/buildsg/sustainability/regulatory-requirements-for-existing-buildings/mandatory-energy-improvement-regime

⁴ URA Master Plan
https://www.ura.gov.sg/Corporate/Planning/Master-Plan