Rents for high-specification industrial spaces grew 2.1% to $2.9 psf in H1
For the first half of 2018, upper floor rents for independent high-specification industrial buildings located outside of science parks and business parks gained 2.1% HoH to $2.9 psf, Colliers International revealed.
According to a report, business park rents edged up by 1.2% HoH to $4.24 psf as tenants continued to gravitate towards newer business park buildings with better specifications which are able to command higher rents.
Meanwhile, average gross rents of logistics properties slipped by 0.8% HoH to $1.25 psf due to the supply influx in 2017.
Also read: Industrial property prices slipped 2.1% in Q2 The net new supply of industrial space totalled 3.24 million sqft in H1 2018, taking into account the net withdrawal of 1.62 million sq ft (150,000 sqm) of single-user factory spaces in Q1 2018.
Some of the major industrial supply came from properties like multiple-user factories like Mega@Woodlands (1.05 million sqft), Nordcom Two (749,000 sqft), and T-Space (737,000 sqft).
Warehouses like PLG Building (592,000 sqft) and Poh Tiong Choon Logistics Hub (548,000 sqft) also contributed.
JTC had previously indicated that future new supply is set to ease from the record supply of 20.9 million sqft (1.9 million sqm, net lettable area) completed in 2017.
Incoming supply in the second half of 2018 will come from factories like Tuas Bay Drive (523,000 sqft) and JTC Poultry Processing Hub @ Buroh (431,000 sqft), as well as a warehouse at Tuas South Avenue 14 (685,000 sqft) and a business park Alice @ Mediapolis (425,000 sqft).
Leasing records picked up in H1 2018, possibly due to the abundance of new industrial space coming on-stream.
This brought total leasing records for H1 2018 to 5,193, an increase of 21% YOY and the highest level on a semi-annual basis, Song noted.