THE CONSIDERATION OF LOCAL RENT FIXING

Abstract

High rise office buildings in Singapore have been on the increase every year especially in the central area. Many of these buildings are intended for investment and therefore, are usually let out to tenants. As such when a particular building is completed, a marketing manager must fix a rental schedule and go into the market. The pegging of a rental schedule requires an accurate knowledge of such matters as the type of competing space, rents currently charged and the special requirement of prospective tenants. This dissertation is intended to study into how the rental schedule can be fixed by taking a look at how managers in local practice are determining the rentals for these buildings and to make a comparison between the principles advocated in theory. The rental level is basically determined by market forces, thus obviously data about the market have to be analysed in order to peg realistic rental rates. These relevant market data are then used as comparisons for the manager to determine the rental rates for any building that is about to be marketed.