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Warehouse rents dropped by 4.9 percent during the third quarter of 2017, leading the decline in industrial rents, reported Singapore Business Review citing UOB Kay Hian.
Multiple-user factory rentals and single-factory rentals fell by 3.3 percent and 2.7 percent, respectively, primarily due to a surge in supply.
UOB Kay Hian analyst Peihao Loke noted that while 2018 will witness a surge in single-user factory supply, it will not be of much concern.
This comes as single-user factories “generally cater to generalist industrialists, and can attain higher occupancies (compared with multiple-users).”
Business parks, on the other hand, witnessed an increase in rents due to the lack of new supply over the past two years.
Knight Frank said demand has been supported as certain trades such as technology and finance grew into business parks.
Some financial firms also moved their back-end operations to business parks, on the back of increasing office rents.
This article was edited by Keshia Faculin.
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