Savills: High-spec industrial rents at the highest point since 2012
The pick-up in high-spec industrial rental fees remains in line with the overall rise viewed all over the commercial field, with warehouse including logistics residential properties recording a quarterly boost of 1.4% in 2Q2022 to 2.8% in 3Q2022, where standard rental fees ranked at $1.51 psf.
“Need for industrial areas, especially contemporary high spec storehouses, in addition to high-spec commercial along with establishment parks with exceptional connection as well as facilities will continue to be founded by development sectors such as the logistics, food, accuracy engineering together with biomedical markets,” says Alan Cheong, executive director of research at Savills.
The consultancy expects leas of prime storehouse along with logistics real estates will definitely rise 2% to 5% y-o-y for each year in 2022 and 2023. Meanwhile, multi-user factories may reduce from 10% to 12% y-o-y boost in 2022 to 4% to 6% in 2023.
A Savills Singapore research study found that the standard monthly rental fee for high-spec business area was $3.69 psf in 3Q2022. This is a 1.1% every quarter surge as well as go with the documented q-o-q progress in 2Q2022. The rental cost has increased considering that Savills started gathering this data in 2012.
Based upon a basket of commercial realties tracked by Savills, the prices for 60-year leasehold and freehold commercial residential properties rose by 1.2% q-o-q to $463 psf plus $758 psf, specifically. “Aside from the extended remaining period as well as nature of estate leases, the surge in costs was driven by the strong cost growth for food factory estates,” the Savills report adds.
Next year, commercial rents are assumed to increase, combined with the surge in service fees, and the higher energy in leas will continue as proprietors pass on higher company expenses to lessees, states Cheong.
