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

The pick-up in high-spec commercial rents remains in line with the general increase viewed throughout the industrial market, with storehouse including logistics buildings reporting a quarterly boost of 1.4% in 2Q2022 to 2.8% in 3Q2022, where standard rents ranked at $1.51 psf.

A Savills Singapore research study found that the average regular monthly lease for high-spec commercial area was $3.69 psf in 3Q2022. This is a 1.1% quarterly rise and complement the recorded q-o-q development in 2Q2022. The rentals price has climbed given that Savills began collecting this information in 2012.

Based on a basket of industrial estates tracked by Savills, the costs for 60-year leasehold and freehold commercial properties increased by 1.2% q-o-q to $463 psf plus $758 psf, respectively. “In addition to the extended standing tenure and nature of property leases, the rise in costs was driven by the strong price development for food factory estates,” the Savills record includes.

“Need for industrial rooms, especially modern high requirements warehouses, in addition to high-spec industrial and business parks with great connection as well as services will continue to be underpinned by buildup sectors like the logistics, food, accuracy technological innovation together with biomedical industries,” states Alan Cheong, executive director of study at Savills.

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Next year, industrial rents are expected to enhance, combined with the increase in service fees, furthermore the higher energy in rents will proceed as property owners hand down higher organization costs to tenants, says Cheong.

The working as a consultant projects leas of top warehouse along with logistics real estates will increase 2% to 5% y-o-y for each year in 2022 and 2023. Meanwhile, multi-user manufacturing facilities may moderate from 10% to 12% y-o-y rise in 2022 to 4% to 6% in 2023.

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