Savills: High-spec industrial rents at the highest point since 2012
The pick-up in high-spec industrial rental fees is in line with the overall boost seen throughout the commercial industry, with storage facility including logistics buildings recording a quarterly boost of 1.4% in 2Q2022 to 2.8% in 3Q2022, where standard leas stood at $1.51 psf.
The consultancy expects leas of top storage facility along with logistics properties will definitely climb 2% to 5% y-o-y for each year in 2022 and even 2023. Meanwhile, multi-user manufacturing facilities may moderate from 10% to 12% y-o-y boost in 2022 to 4% to 6% in 2023.
Next year, industrial leas are assumed to boost, coupled with the rise in service charges, and the upward energy in leas will continue as proprietors hand down greater service prices to occupants, claims Cheong.
Based upon a basket of industrial estates tracked by Savills, the costs for 60-year leasehold and freehold commercial residential properties rose by 1.2% q-o-q to $463 psf also $758 psf, specifically. “Besides the more lasting period and nature of property leases, the rise in costs was generated by the solid price growth for food factory properties,” the Savills record adds.
“Need for commercial areas, especially modern-day high specification storage facilities, in addition to high-spec commercial along with establishment parks with excellent connection and amenities will certainly continue to be founded by buildup industries like the logistics, food, precision engineering together with biomedical markets,” says Alan Cheong, executive director of research at Savills.
A Savills Singapore research discovered that the average month-to-month rental fee for high-spec industrial room was $3.69 psf in 3Q2022. This is a 1.1% quarterly surge and also go with the documented q-o-q progress in 2Q2022. The leasing rate has climbed considering that Savills began gathering this information in 2012.