Savills: High-spec industrial rents at the highest point since 2012
The pick-up in high-spec industrial leas is in line with the total boost observed all over the industrial sector, with storehouse also logistics buildings recording a quarterly raise of 1.4% in 2Q2022 to 2.8% in 3Q2022, where average leas ranked at $1.51 psf.
A Savills Singapore research found that the standard monthly lease for high-spec business room was $3.69 psf in 3Q2022. This is a 1.1% quarterly rise and go with the documented q-o-q progress in 2Q2022. The rentals rate has risen since Savills initiated collecting this information in 2012.
“Demand for industrial areas, especially contemporary high requirements warehouses, in addition to high-spec commercial plus business parks with exceptional connection and services will continue to be underpinned by development industries such as the logistics, food, precision engineering together with biomedical fields,” claims Alan Cheong, executive director of research at Savills.
Next year, industrial rentals are assumed to enhance, coupled with the increase in service fees, furthermore the higher momentum in rents will certainly continue as property managers pass on greater company expenses to tenants, claims Cheong.
Based on a basket of commercial realties tracked by Savills, the rates for 60-year leasehold and freehold industrial properties increased by 1.2% q-o-q to $463 psf and $758 psf, respectively. “Aside from the longer remaining period as well as nature of property leases, the rise in rates was steered by the strong cost growth for food factory properties,” the Savills record adds.
The consultancy expects rents of top warehouse along with logistics properties will climb 2% to 5% y-o-y for each year in 2022 and even 2023. Meanwhile, multi-user factories might regulate from 10% to 12% y-o-y boost in 2022 to 4% to 6% in 2023.