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Data from Savills showed that deals sealed for warehouse and factory space rose 3.1 percent year-on-year to 2,417 during the first quarter of 2019.
The industrial leasing market witnessed growth for the 11th straight quarter in Q1 2019, reported Singapore Business Review.
Data from Savills showed that deals sealed for warehouse and factory space rose 3.1 percent year-on-year to 2,417 during the first quarter of 2019.
“The increase was led mainly by higher leasing demand for single-user factory space due to the segment’s declining rents,” said Savills.
It noted that the prolonged weakness in the manufacturing sector and the economy saw industrialists capitalising on low rents instead of using money to buy space.
The removal of warehouse space and the robust leasing demand for single-user factory space resulted in better occupancy rates for both segments.
Rates for multiple-user factory space, on the other hand, dropped due to poor take-up within the Central Planning Region.
On the supply front, Edmund Tie & Co expects the supply pipeline to taper off in the next three years.
This comes as the annual average industrial supply of around seven million sq ft net lettable area (NLA) for Q2 2019 to 2022 is almost half the last three-year average of 13.2 million sq ft NLA.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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