Chart of the Day: Industrial sector's vacancy rates to hit 12.1% in 2020

Rentals across industrial, warehouse and business parks sectors would also start turning up from 2019 onwards.

This chart from DBS shows the market summary of the industrial real estate industry in 2018 where the average vacancy rate is at 10.7% in Q4 2018. Vacancy rates are expected to soar to 11.7% in 2019 and 12.1% in 2020.

Furthermore, DBS added that it could be more controlled in the coming years as new supply gets absorbed.

“As some of these new supply completions were absorbed in 2018, spot rentals faced a growth of 3% on average for business park space, whereas factory space rental remained constant, with the exception of warehouse which faced a marginal drop of 1%,” said DBS.

Rentals across industrial, warehouse and business parks sectors would also start turning up from 2019 onwards. In 2018, warehouses and business parks saw rental declines of 0.12% and 0.09% YoY respectively, whilst industrial properties remain flat.