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

The consultancy projects leas of top warehouse and logistics properties will increase 2% to 5% y-o-y for each year in 2022 and even 2023. At the same time, multi-user factories might moderate from 10% to 12% y-o-y increase in 2022 to 4% to 6% in 2023.

A Savills Singapore study discovered that the common month-to-month rent for high-spec commercial space was $3.69 psf in 3Q2022. This is a 1.1% every quarter increase and also suit the documented q-o-q development in 2Q2022. The rental cost has risen since Savills initiated gathering this information in 2012.

“Demand for commercial areas, particularly modern-day high specification storehouses, in addition to high-spec industrial and company parks with great connectivity as well as amenities will certainly continue to be founded by growth sectors like the logistics, food, precision engineering together with biomedical fields,” states Alan Cheong, executive supervisor of research at Savills.

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Next year, commercial rentals are anticipated to increase, coupled with the increase in service costs, furthermore the upward momentum in rentals will proceed as property managers hand down greater business costs to tenants, claims Cheong.

Based on a basket of industrial realties tracked by Savills, the prices for 60-year leasehold and also freehold commercial properties increased by 1.2% q-o-q to $463 psf plus $758 psf, respectively. “Besides the more remaining period and also nature of property leases, the increase in rates was steered by the strong price development for food factory estates,” the Savills record adds.

The pick-up in high-spec commercial leas remains in line with the total rise seen throughout the industrial sector, with storehouse also logistics homes recording a quarterly increase of 1.4% in 2Q2022 to 2.8% in 3Q2022, where average leas ranked at $1.51 psf.