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The delay in industrial property completions last year is expected to boost supply for such properties this year, reported Singapore Business Review citing DBS.
The supply of single-user factory spaces is forecasted to increase by around nine percent or almost 2.2 million sq m, while multi-user factory spaces will expand by around 15 percent or nearly 1.7 million sq m.
Warehouse spaces are expected to rise by around six percent or almost 0.6 million sq ft, while business park spaces are anticipated to increase by about 12 percent or 0.3 million sq m.
Majority of the spaces are pre-committed, hence, not an issue for existing landlords.
Moreover, this year’s supply surge is expected to weaken over the next few years, said DBS.
Meanwhile, demand for industrial spaces grew faster than supply during the fourth quarter of 2018 and is forecasted to increase further if manufacturing activities continue to expand.
DBS expects demand for single-user factory space to pick up as companies consolidate operations to achieve operational efficiency.
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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