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

A Savills Singapore research study found that the typical month-to-month lease for high-spec industrial space was $3.69 psf in 3Q2022. This is a 1.1% every quarter increase as well as matches the documented q-o-q growth in 2Q2022. The leasing cost has increased since Savills began accumulating this data in 2012.

Next year, commercial rents are expected to boost, paired with the increase in service fees, and the upward momentum in rents will continue as property managers pass on higher business prices to occupants, states Cheong.

Based on a basket of industrial realties tracked by Savills, the costs for 60-year leasehold and also freehold industrial real estates climbed by 1.2% q-o-q to $463 psf and $758 psf, specifically. “Besides the longer remaining tenure and nature of freehold leases, the rise in rates was driven by the solid price growth for food factory properties,” the Savills record adds.

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The consultancy anticipates rents of top storage facility and logistics properties will climb 2% to 5% y-o-y for each and every year in 2022 and even 2023. Meanwhile, multi-user factories might moderate from 10% to 12% y-o-y rise in 2022 to 4% to 6% in 2023.

The pick-up in high-spec industrial leas is in line with the total boost viewed throughout the industrial market, with storehouse also logistics homes documenting a quarterly boost of 1.4% in 2Q2022 to 2.8% in 3Q2022, where standard leas ranked at $1.51 psf.

“Need for commercial areas, especially contemporary high requirements warehouses, in addition to high-spec commercial along with company parks with great connectivity and amenities will continue to be founded by growth sectors like the logistics, food, accuracy technological innovation and biomedical markets,” claims Alan Cheong, executive supervisor of research study at Savills.

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