Savills: High-spec industrial rents at the highest point since 2012
A Savills Singapore research study found that the average monthly rental fee for high-spec commercial room was $3.69 psf in 3Q2022. This is a 1.1% quarterly boost as well as matches the documented q-o-q growth in 2Q2022. The leasing price has climbed since Savills began collecting this information in 2012.
“Need for industrial areas, particularly modern high spec warehouses, as well as high-spec commercial plus company parks with great connection and features will continue to be derived by buildup industries like the logistics, food, accuracy technological innovation and even biomedical sectors,” states Alan Cheong, executive supervisor of study at Savills.
The pick-up in high-spec industrial rental fees is in line with the overall boost seen throughout the commercial market, with warehouse also logistics properties reporting a quarterly rise of 1.4% in 2Q2022 to 2.8% in 3Q2022, where average rents stood at $1.51 psf.
The working as a consultant anticipates leas of prime warehouse along with logistics real estates will rise 2% to 5% y-o-y for each year in 2022 including 2023. At the same time, multi-user factories may regulate from 10% to 12% y-o-y rise in 2022 to 4% to 6% in 2023.
Next year, commercial rents are expected to enhance, paired with the rise in service charges, and the higher momentum in rents will continue as proprietors pass on higher service costs to occupants, claims Cheong.
Based upon a basket of industrial realties tracked by Savills, the prices for 60-year leasehold and freehold industrial properties rose by 1.2% q-o-q to $463 psf also $758 psf, specifically. “Aside from the extended lasting period and nature of estate leases, the surge in prices was steered by the solid price growth for food factory estates,” the Savills report adds.
