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Single-user factory space is expected to account for the lion’s share (64 percent) of new industrial property supply in 2019, according to a recent report from Colliers International that cited JTC data.
In particular, about 10.35 million sq ft of single-user factory premises are expected to be completed this year out of the 16.17 million new overall stock.
Comparatively, business parks are forecasted to comprise 700,000 sq ft. Warehouses and multiple-user factories are projected to make up two million sq ft and three million sq ft respectively.
Major upcoming industrial projects this year include Syscon’s 30 Tuas Bay Drive single-user factory, which will have a gross floor area (GFA) of around 524,000 sq ft. For multiple-user factories, these include trendspace factor (660,000 sq ft) and JTC Bedok Food City (1.14 million sq ft).
“While we anticipate demand for logistics properties to improve in 2019, with e-commerce as one of the key drivers, the market will likely take a while to digest the large amount of supply completed in 2017-2018, which altogether (net) accounted for more than 11.3 percent of current logistics stock,” said Colliers.
“While warehouse vacancy rate has improved, it remained elevated at 10.5 percent at the end of 2018. With new logistics supply slowing in 2019 to around 2.1 million sq ft (196,000 sq m, equivalent to 1.8 percent of current logistics stock), we expect logistics rents to remain weak in the first half of 2019 before recovering 1.0 to 2.0 percent towards the end of 2019.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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