More flexible use of space in the offing

By
/ EdgeProp Singapore
|
January 4, 2019 12:00 PM SGT
The Dyson campus in the UK. The company will open its first electric vehicle factory in Singapore in 2020. (Credit: Bloomberg)
Dyson, the British firm famous for its bladeless fans and bagless vacuum cleaners, announced in October that it would be building its first electrical vehicle factory in Singapore. Construction is scheduled to start in December and to be completed in 2020. The new electric vehicles are expected to roll off the assembly lines in early 2021.
The production manufacturing facility will build on Dyson’s existing advanced motor and battery expertise in Singapore and draw on the nation’s expertise in R&D, advanced manufacturing, automation and access to supply chains, says the company.
“Singapore continues to attract higher-value-added manufacturing companies, such as Dyson, to set up manufacturing facilities,” says Brenda Ong, executive director of industrial and logistics at CBRE. “Given the skilled labour and strong government support, more of these advanced manufacturing companies are focusing on production of parts for robotics, Internet of Things and autonomous vehicles here.”

Strong demand for warehouse, high-value-add space

In July last year, e-retail giant Amazon.com launched Prime Now to households in Singapore, offering same-day delivery service. To meet that promise, Amazon opened a 100,000 sq ft Prime Now warehouse near Jurong.
With the rise in e-commerce and expectations of faster delivery time, there is a strong focus on shortening last-mile delivery time, observes CBRE’s Ong. “At the same time, there is an increasing need to consolidate at a retail and warehouse level to ensure that costs are kept competitive for retailers and consumers.
Interest in the logistics sector of the industrial space is expected to remain strong, especially as the government places a strong focus on scaling up the urban logistics in Singapore, says Ong. “Confidence in the warehouse sector is evident; more third-party logistics providers [3PLs] are expanding here.” Notable 3PL warehouses in the pipeline include Bollore Logistics’ warehouse on Sunview Way (0.54 million sq ft); Schenker Singapore’s warehouse on Alps Avenue (0.55 million sq ft); and Yusen Logistics’ warehouse on Tuas Avenue 13 (0.22 million sq ft).
Sectors that continue to drive leasing demand were those in the high-value-added industries, such as precision engineering and electronics, with specific requirements such as clean rooms, says...