Savills: High-spec industrial rents at the highest point since 2012
The working as a consultant anticipates leas of prime warehouse and logistics properties will definitely rise 2% to 5% y-o-y for every year in 2022 including 2023. Meanwhile, multi-user factories may reduce from 10% to 12% y-o-y increase in 2022 to 4% to 6% in 2023.
Based upon a basket of industrial estates tracked by Savills, the rates for 60-year leasehold and freehold industrial real estates climbed by 1.2% q-o-q to $463 psf and $758 psf, respectively. “Besides the longer remaining tenure as well as nature of freehold leases, the rise in costs was driven by the solid rate growth for food factory real estates,” the Savills record includes.
A Savills Singapore research found that the typical month-to-month lease for high-spec business space was $3.69 psf in 3Q2022. This is a 1.1% quarterly boost and also complement the documented q-o-q growth in 2Q2022. The rental price has risen since Savills started accumulating this information in 2012.
The pick-up in high-spec commercial leas is in line with the total boost viewed all over the commercial industry, with warehouse and logistics residential properties reporting a quarterly boost of 1.4% in 2Q2022 to 2.8% in 3Q2022, where average rental fees set at $1.51 psf.
“Demand for commercial areas, particularly contemporary high specification warehouses, as well as high-spec commercial and business parks with outstanding connection and services will continue to be founded by development industries such as the logistics, food, accuracy engineering and biomedical markets,” says Alan Cheong, executive director of study at Savills.
Next year, commercial rents are assumed to boost, combined with the rise in service charges, and the higher momentum in rents will certainly continue as property managers pass on higher company prices to tenants, states Cheong.