Savills: High-spec industrial rents at the highest point since 2012

/ EdgeProp Singapore |
Next year, industrial rents are expected to increase, coupled with the rise in service charges, says Savills.
Join our  Telegram  channel and follow our  Facebook  for the latest update.
SINGAPORE (EDGEPROP) - A Savills Singapore research found that the average monthly rent for high-spec industrial space was $3.69 psf in 3Q2022. This is a 1.1% quarterly increase and matches the recorded q-o-q growth in 2Q2022. The rental price has risen since Savills started collecting this data in 2012.
“Demand for industrial spaces, especially modern high specification warehouses, as well as high-spec industrial and business parks with excellent connectivity and amenities will still be underpinned by growth industries such as the logistics, food, precision engineering and biomedical sectors,” says Alan Cheong, executive director of research at Savills.
The pick-up in high-spec industrial rents is in line with the overall increase seen across the industrial sector, with warehouse and logistics properties recording a quarterly increase of 1.4% in 2Q2022 to 2.8% in 3Q2022, where average rents stood at $1.51 psf.
Advertisement
Based on a basket of industrial properties tracked by Savills, the prices for 60-year leasehold and freehold industrial properties rose by 1.2% q-o-q to $463 psf and $758 psf, respectively. “Apart from the longer remaining tenure and nature of freehold leases, the rise in prices was driven by the strong price growth for food factory properties,” the Savills report adds.
Next year, industrial rents are expected to increase, coupled with the rise in service charges, and the upward momentum in rents will continue as landlords pass on higher business costs to tenants, says Cheong.
The consultancy expects rents of prime warehouse and logistics properties will rise 2% to 5% y-o-y for each year in 2022 and 2023. Meanwhile, multi-user factories may moderate from 10% to 12% y-o-y increase in 2022 to 4% to 6% in 2023.

Follow Us
Follow our channels to receive property news updates 24/7 round the clock.
EdgeProp Telegram
EdgeProp Facebook
Subscribe to our newsletter

Our Site

Popular Projects

Condos

Landed

Commercial

Industrial

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

View More