Meta giving up seven office floors at South Beach Tower totalling 115,000 square feet
South Beach is a mixed-use development that was built in phases over the course of 2015 and 2016. It includes a JW Marriott hotel as well retail space and luxury residential units.
Even though Meta has negotiated a lease with a potential replacement tenant, it has not been signed. She refused any details on the tenant.
Meta’s portfolio will have two additional floors subdivided for tenants who don’t need large spaces. These include those in the private wealth or consumer sector. In deciding how to divide the three remaining floors, we will take into account market demand and decide whether they should be rented as whole floors or as smaller units.
Meta was the very first tenant of South Beach Tower. Meta moved into the building after the Tower obtained its Temporary Occupation Licence in 2015. Meta is also one of the largest tenants in the South Beach tower.
Tableau departure
The number of departures was smaller last year. Tableau decided not to renew the lease of two floors in August 2023. Salesforce acquired Tableau in 2019 and moved the software company into Suntec City.
The South Beach Tower landlord is working on a plan to replace Meta as the tenant of two of seven office floors within the 34-story building.
The building’s lease expires this September. It is thought that the company began to move its staff out from South Beach Tower at the beginning of last year and consolidate its teams in Marina One.
Meta had informed the landlord that South Beach Tower would not be renewed in its lease, in June last. This came after the second major global layoffs by the tech group in March 2023.
The seven floors of South Beach Tower are the highest part of the building and add up to 115,000 sq. ft. of net leasable space. This is around 22.7% out of the total offices of 507-395 sq. ft.
The office is located on 31 floors. Each floor has an average area between 18,000 and 20,000 sq.ft.
Sanofi-Aventis Singapore leased two floors of South Beach Tower in the past, but only one was renewed. The lease for the other floor will expire in 2023.
Datadog a new tenant
Datadog, a company that provides cyber security for cloud applications, has taken over one of these three floors. Datadog, a Nasdaq-listed firm, provides cyber security to cloud applications.
South Beach Tower currently has a good pipeline of inquiries for leases. In the coming months, we expect to see more lease commitments from businesses in different industries.
We expect market sentiment to improve during the second half in 2024. This is because interest rates will ease and inflationary pressures will decrease, the economy will strengthen and companies are more confident to begin their expansion plans.
South Beach Tower rents are currently between S$12.50 (per square foot) and S$13.50 (per square feet) per month.
South Beach will be undergoing asset enhancements worth S$4millions during the second half and into 2025. Most of these renovations will occur in the South Beach office tower. They include the transformation of the ground-floor main lobby into a multipurpose social space where tenants can hold events and product launches.
