Business parks are the next big thing in real estate

Swanky multinationals are mulling address changes.

The business park sub-segment is the underappreciated rising star of the real estate sector, according to a report DBS.

With reports that large multinationals are mulling a shift away from their CBD locations to the upcoming Mapletree Business City II, DBS believes that the unheralded sub-segment could be an outperformer this year.

“We have been advocating that the Business Park space is an under-appreciated sub-segment that could potentially be a star performer amongst all real estate sectors this year. In recent quarters, we have seen back-filling of space at both Ascendas REIT and MINT which are positive data-points for both REITs. Frasers Commercial Trust is a potential beneficiary given that filling up at MBC II will mitigate leasing risk for its Alexandra Technopark, which is located next to the upcoming property,” stated DBS.