Meta gives up 7 floors of office space totaling 115,000 sq. ft. at South Beach Tower
The landlord of South Beach Tower has secured a new tenant for Meta’s two office floors in the 34-storey tower.
The lease will expire at the end September of this year. In the first half last year, it is believed that South Beach Tower began moving staff to Marina One.
Meta had confirmed to the landlord in June of last year that they would not renew their lease at South Beach Tower. The tech group had just completed its second round of global layoffs, which took place in March 2023.
The seven floors in the South Beach Tower’s high zone add up to approximately 115,000 sq ft (sq ft). This is 22.7 percent of the total of 507,395 square ft in offices.
The office space is spread over 31 floors with an average floor area of 18,000 to 20,000 square feet.
The South Beach Development, which was completed in phases between 2015 and 2016, includes a JW Marriott Hotel, retail space, and luxury residences.
The lease agreement is yet to be signed, even though a deal was negotiated with an upcoming tenant who will take over two floors of the Meta portfolio. She refused to reveal any information about the tenant.
Two more floors will be subdivided in the Meta portfolio to accommodate tenants who do not need large spaces, such as those from the private wealth and consumer sectors. We will respond to the market’s demand by deciding if we want to rent out all three floors or subdivide them into smaller units.
Meta was the first tenant in South Beach Tower. It moved in in 2015, after the Tower’s Temporary Occupation permit was granted. Meta is the largest tenant of the South Beach Tower.
Last year, there were some smaller departures. Tableau didn’t renew its two-floor lease when it expired in 2023. Salesforce acquired the data-analytics company in 2019. It moved to its Suntec City office.
Sanofi-Aventis Singapore, the pharmaceutical company, used to rent two floors in South Beach Tower. However, it only renewed the lease of one floor, and allowed the lease on the second level to expire June 2023.
Datadog a new tenant
Datadog has leased one of the three floors that were vacated. The Nasdaq listed company offers cyber security for cloud-based applications.
South Beach Tower has a healthy pipeline of lease inquiries. We have advanced negotiations underway with companies in several industries, including professional services, transportation, and consumer goods. Expect more commitments in the next few months.
As interest rates and inflationary forces ease, and the economy grows stronger, we expect the market to improve in the second half 2024.
Rents in South Beach Tower range between S$12.50 and S$13.50 per square foot per month.
South Beach is planning to invest S$4million in asset enhancements in the second and third halves of 2024, as well as 2025. The majority of renovations will take place in the office tower. The main lobby, two sky gardens (on levels 11 and 21) and the roof terrace at level 34 will be transformed into social spaces that can host product launches or other events.