Savills: High-spec industrial rents at the highest point since 2012
The pick-up in high-spec commercial rental fees is in line with the total boost seen all over the commercial industry, with warehouse also logistics properties reporting a quarterly rise of 1.4% in 2Q2022 to 2.8% in 3Q2022, where average rental fees stood at $1.51 psf.
“Need for commercial spaces, specifically contemporary high spec storehouses, as well as high-spec industrial and establishment parks with outstanding connectivity and features will certainly continue to be founded by growth industries like the logistics, food, accuracy engineering and even biomedical sectors,” states Alan Cheong, executive director of study at Savills.
A Savills Singapore research located that the average month-to-month rent for high-spec industrial space was $3.69 psf in 3Q2022. This is a 1.1% quarterly rise as well as go with the recorded q-o-q progress in 2Q2022. The rentals rate has climbed because Savills began collecting this information in 2012.
The consultancy expects leas of prime warehouse and logistics properties will rise 2% to 5% y-o-y for each year in 2022 including 2023. Meanwhile, multi-user factories might moderate from 10% to 12% y-o-y increase in 2022 to 4% to 6% in 2023.
Based upon a basket of commercial estates tracked by Savills, the costs for 60-year leasehold and also freehold industrial real estates increased by 1.2% q-o-q to $463 psf and $758 psf, respectively. “Besides the more remaining period and also nature of freehold leases, the surge in rates was generated by the strong cost development for food factory real estates,” the Savills report adds.
Next year, commercial rents are assumed to raise, coupled with the surge in service charges, and even the upward momentum in leas will certainly continue as proprietors hand down higher service costs to lessees, says Cheong.
