Tanjong Pagar’s Office Vacancy Dips to 9.7% in Q1 2025 — Is Demand Finally Outstripping Supply?

As of Q1 2025, office vacancy rates in Tanjong Pagar have dipped to 9.7%, signaling a renewed appetite for office rental in one of Singapore’s most strategically located business hubs. This drop is more than a number—it reflects shifting priorities among businesses seeking flexible lease options, dynamic collaborative workspaces, and access to a vibrant professional network.

Once known primarily for its skyscrapers and corporate strongholds, Tanjong Pagar is now evolving into a more inclusive and diverse office ecosystem. Office rental Singapore has become increasingly attractive thanks to innovation in workspace design, energy-efficient infrastructure, and hybrid work-friendly layouts.

Why Tanjong Pagar is Attracting Tenants Again

With vacancy rates shrinking and interest climbing, what’s making Tanjong Pagar a magnet for companies in 2025?

Here’s what’s driving demand:

  • Prime location: Tanjong Pagar remains a key node in Singapore’s Central Business District (CBD), providing easy MRT access and walkability to major banks, tech companies, and F&B hotspots.
  • Modern office amenities: Many buildings have been refurbished with sustainable office spaces, smart tech, and wellness-oriented features like biophilic design and ergonomic furniture.
  • Flexible lease options: From full-floor setups to compact private suites, tenants can scale their office footprint without long-term commitment.
  • Affordable office spaces: Compared to Marina Bay or Raffles Place, Tanjong Pagar offers competitive rental prices with similar high-end facilities.
  • Coworking spaces: Operators like WeWork, The Work Project, and JustCo have contributed to a lively coworking scene with shared facilities, plug-and-play setups, and access to a professional community.

The Rise of Community-Centric Office Rentals

Office users today aren’t just looking for four walls and a desk. They want community, inspiration, and adaptability.

In 2025, coworking spaces in Tanjong Pagar are thriving by offering:

  • Networking opportunities through curated events, startup meetups, and collaborative lounges
  • Local business connections via shared corridors with SMEs, creatives, and corporates
  • Productivity-enhancing environments that blend quiet focus zones with open-plan energy
  • Access to modern amenities, from coffee bars to video conferencing studios

As one startup founder put it:

“We moved into a shared office at 79 Anson Road in late 2024. Within two months, we found a tech partner, hired two new teammates, and closed a deal thanks to a referral from a coworker. The space paid for itself.”

Energy Efficiency = Cost Savings

Sustainability is no longer just a buzzword—it’s a business asset. Companies are now actively choosing energy-efficient buildings with cost-saving utilities, solar panels, motion-sensor lighting, and green certifications to reduce operational expenses while meeting ESG goals.

Forward-thinking landlords in Tanjong Pagar are responding with innovative office solutions that align with this demand. Tenants can enjoy long-term savings while demonstrating commitment to the environment—a win-win.

Office Rentals That Support Hybrid Work

Post-pandemic, hybrid work isn’t just a trend—it’s the standard. Businesses are leaning into office rental models that provide:

  • Customizable layouts for part-time in-office teams
  • Remote work support, including day passes and virtual office services
  • Startup-friendly offices that minimize upfront capital while maintaining a strong brand presence

Looking Ahead

With vacancy down and demand on the rise, Tanjong Pagar is poised for a strong 2025. The convergence of affordable office spaces, coworking space benefits, and innovative office layouts makes this district a top choice for SMEs, multinationals, and startups alike.

If you’re exploring your next move in the Singapore office scene, Tanjong Pagar offers the sweet spot: flexibility, community, and future-ready infrastructure—all wrapped in a strategic downtown location.