Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Prime Logistics Properties Continues to Outperform, Rising By 3.0% qoq in Q1 2022

Jayna Poh • 05/04/2022

Based on C&W’s basket of industrial properties, steady rental increases were observed across the board during the first quarter of this year, except for outlying business park space. Prime logistics properties continued to outperform, rising by 3.0% qoq in Q1 2022.

Similarly, high-tech properties also experienced stable growth during the quarter. Rents of factories rose gradually in the first quarter of 2022 given relatively tight vacancy rates as the bulk of supply is only expected to come onstream in the latter part of the year. City fringe business park continued to experience steady growth amidst tight vacancy. On the other hand, outlying business parks rents edged lower during the quarter as vacancy rates remain elevated. 

Broad-based growth in rents is expected across different types of industrial properties this year despite rising downside risks. Specifically, rents for business parks in both the city fringe and outlying areas are projected to increase in 2022 with the former experiencing higher growth rate due to their limited supply.

“Continued healthy demand is expected for high-tech, prime logistics and warehouse properties amid ongoing expansion from the biomedical, technology, manufacturing and logistics sectors, fueled by the exponential growth in e-commerce and business digitalization,” said Wong Xian Yang, Head of Research, Singapore at Cushman & Wakefield. “Ample supply of factory space coming onstream this year could add downward pressure on occupancy rates. Nevertheless, overall factory rents are still expected to rise in 2022, albeit at gradual rates as continued expansion in the manufacturing and logistics sectors would underpin healthy demand for factory space.”

Figure 1: Industrial Supply Pipeline

Figure1 - Prime Logistics Properties

Demand Supply Mismatch Sends Prime Logistics Rents Soaring

A very tight supply situation has sent prime logistics rents soaring, rising 3.0% qoq in Q1 2022. According to C&W’s basket of prime logistics properties, vacancy rates have fallen to below 5%.

 

Brenda Ong, Executive Director and Head of Industrial & Logistics, Singapore at Cushman & Wakefield said, “Third-party logistics players and end-users are actively looking for prime logistic space to meet stronger consumption demand and a ramp up of manufacturing production especially for semiconductors amidst Singapore’s re-opening of economic activities and a global shortage of semiconductor chips. With little available supply, tenants are biting the bullet and accepting significant rental increases. Future supply of prime logistics assets remains limited in 2022 with only a few major projects in the pipeline such as 2PS1, LOGOS Tuas Logistics Hub and LOGOS Penjuru Logistics Centre, among others. These projects are also substantially pre-committed. The current demand supply mismatch for prime logistics space could accelerate rental growth this year. 

-END-

Recent Press Releases

Shankar Narayanasamy appointment
Cushman & Wakefield Appoints Shankar Narayanasamy as Client Solutions Lead for Global Occupier Services, Asia Pacific

Cushman & Wakefield, a global leader in commercial real estate services, today announced the appointment of Shankar Narayanasamy as Client Solutions Lead for its Global Occupier Services (GOS) business in Asia Pacific, effective 9 May 2022. 

Amanda Phua • 18/05/2022

CapitaSpring-Cardimage
Cushman & Wakefield’s new CapitaSpring office reflects its long-term commitment to Singapore and its growing importance as a global gateway city

Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, has launched its new office premises at CapitaSpring, a new integrated development located within Singapore’s Central Business District (CBD). 

Chek Yee Foo • 11/05/2022

Damian Kells Promotion
Cushman & Wakefield Promotes Damian Kells to Head of Integrated Facilities Management for Asia Pacific

Cushman & Wakefield, a global leader in commercial real estate services, today announced that Damian Kells has been promoted to Head of Integrated Facilities Management (IFM), Asia Pacific, effective 1 May 2022.

Amanda Phua • 09/05/2022

statistics-hand-unplash-cardimage
Comments On Q1 2022 Ura Real Estate Statistics

For the first quarter of 2022, only 1,825 new private homes were sold, inching down by 39.5% as compared to 3,018 units transacted in the previous quarter and 47.8% lower yoy.

Xian Yang Wong • 22/04/2022

Sixth Avenue Centre
Prime freehold mixed-use boutique site at Bukit Timah Road re-launched for Collective Sale at a reserve price of $85 million

An opportunity for developers and investors to create an exclusive suburban project with hip retail, lifestyle and residential concepts in District 10

Christina Sim • 18/04/2022

Q1 2022 investment volume amounted to $6.1B, With Residential Volumes Registering $3.0B and Commercial Sales Surging to $2.6B
Q1 2022 investment volume amounted to $6.1B, With Residential Volumes Registering $3.0B and Commercial Sales Surging to $2.6B

According to Cushman & Wakefield, Q1 2022 investment volume amounted to $6.1 billion, marking a 17.5% qoq drop over Q4 2021. 

Jayna Poh • 07/04/2022

CBD Grade A vacancy rates  tightened to 4.6% in Q1 2022 from 4.9% in Q4 2021
CBD Grade A Rents Increased by 2.1% qoq in Q1 2022

Amidst tightening vacancy rates, CBD Grade A office rents climbed 2.1% qoq in Q1 2022, higher than 1.7% qoq in the preceding quarter.

Jayna Poh • 06/04/2022

10 Toh Guan Road East Singapore
10 Toh Guan Road East for Sale by Expression of Interest

10 Toh Guan Road East (the “Property”) has been put up for sale via an Expression of Interest (EOI). Cushman & Wakefield is the appointed exclusive marketing consultant for the sale.

Brenda Ong • 04/04/2022

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS