Search

NEWS
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 04 May 11
1113 views


Industrial leases soar in 1Q11 despite rates increase

1Q11 average monthly rent for island-wide industrial properties rose 3.27% QoQ and 23.4% YoY to $1.58 psf, according to CBRE.

In a statement, OCBC Research noted that most of the industrial REITs also registered positive rental reversion, with the leases being renewed at a higher average rental rate during the quarter.

MIT, for instance, saw a 15.5% positive rental reversion last quarter. A-REIT also achieved positive rental reversion of between 2.1% and 6.7% for the majority of its industrial subsectors.

OCBC highlighted that the growth in leases was spurred by REIT companies, which made the largest transaction for industrial properties in Singapore.

Topping the list is AREIT, which paid its sponsor S$125.6m ($316 psf based on GFA) for Neuros & Immunos at Biopolis. CACHE also made its maiden purchase in March, snapping up 6 Changi North Way for $30.9m ($175 psf based on GFA) and 4 Penjuru Lane for $8.9m ($162 psf based on GFA).

Most recently, MLT committed S$24.5m ($148 psf based on GFA) for the acquisition of Jian Huang Building.

CBRE noted that the capital values for industrial properties were growing at a faster pace than rental values leading to cap rate compression in 1Q.

"Apart from REITs, some investors, who were priced out of the residential sector, may have invested in industrial properties instead as the latter has less stringent restrictions. This in turn helped boost demand for strata-titled industrial units," the commercial property advisor said.

Colliers International has forecasted industrial rents and capital values to experience a steady growth of 5%-10% for the whole of 2011.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: CBRE, OCBC Research, AREIT, CACHE, MLT, Colliers International

LATEST COMMERCIAL PROPERTY JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
Singapore singled out in Asia for weak M&A appetite

292 views

Is the KL-Singapore High-Speed Rail project still on the right track?

709 views

The changing taste of Asian art collectors bodes well for the Western art market

47 views

MOST READ EXCLUSIVES

Here are the credit card deals you shouldn't miss during the Great Singapore Sale 2015

Here are the credit card deals you shouldn\'t miss during the Great Singapore Sale 2015

The GSS begins today.

by MARIANNE ESTIOCO
29 May 2015 | 29173 views
 

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

It boasts an automated sun-shading system.

by MARIANNE ESTIOCO
7 Jul 2015 | 14097 views

This retired banker's fintech startup makes complicated wealth management a piece of cake

This retired banker\'s fintech startup makes complicated wealth management a piece of cake

Mesitis provides low-cost aggregated wealth reporting for all investors.

by MARIANNE ESTIOCO
25 May 2015 | 9292 views
 

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

This small start-up has global dreams.

by MARIANNE ESTIOCO
8 Jul 2015 | 8930 views

10 smart ways to spend your GST Vouchers

10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

by KRISANA GALLEZO-ESTAURA
8 Jul 2015 | 7456 views
 

Cocoa Colony to open 12 more outlets in Singapore by end-2015

Cocoa Colony to open 12 more outlets in Singapore by end-2015

The cafe chain seeks to target the masses.

by KRISANA GALLEZO-ESTAURA
21 Jul 2015 | 5079 views

Check out this quaint co-working space that occupies 5 conservation shophouses

Check out this quaint co-working space that occupies 5 conservation shophouses

It has private offices, an events space, and even a beer garden.

by MARIANNE ESTIOCO
22 May 2015 | 4820 views
 

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

Walls and windows function as a big canvas.

by MARIANNE ESTIOCO
15 Jul 2015 | 4143 views

Hootsuite boosts its APAC team opening a new office in Singapore

Hootsuite boosts its APAC team opening a new office in Singapore

Its VP talks about the importance of the company’s culture in line with opening the new space.

by LEE ANNE BABIERRA
18 Jun 2015 | 2959 views
 

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Meeting rooms are named after Asian tourist spots.

by MARIANNE ESTIOCO
5 Jun 2015 | 2874 views

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Find out how they are building the next generation of web communications.

by LEE ANNE BABIERRA
2 Jun 2015 | 2320 views
 

HAITE Group launches its first aviation training center in Singapore

HAITE Group launches its first aviation training center in Singapore

It is the first major investment by a Chinese aerospace firm.

by KRISANA GALLEZO-ESTAURA
13 May 2015 | 1983 views

El Mero Mero founder says Mexican food is not just about tacos and burritos

El Mero Mero founder says Mexican food is not just about tacos and burritos

See how a former legal professional pursued his passion for food.

by LEE ANNE BABIERRA
26 May 2015 | 1723 views
 

This bold ad film tells you what happens when maids are not given their due day off

This bold ad film tells you what happens when maids are not given their due day off

‘Mums & Maids’ generated 5 million views in 5 days.

by KRISANA GALLEZO-ESTAURA
7 May 2015 | 1404 views

This handy app lets you book nearly any service under the sun

This handy app lets you book nearly any service under the sun

Find technicians, babysitters and more with Page Advisor.

by MARIANNE ESTIOCO
8 Jun 2015 | 1372 views
 

PwC Singapore launches its first Investment Fund Centre in Asia

PwC Singapore launches its first Investment Fund Centre in Asia

Expanding its presence in the asset management sector across Asian region.

by LEE ANNE BABIERRA
29 Jun 2015 | 1221 views

Singapore retailers turn to technology to boost productivity

Singapore retailers turn to technology to boost productivity

Shopping for the first child is always challenging for the parents.

by STAFF REPORTER
15 May 2015 | 1219 views
 

This app is out to prove that Singapore is anything but boring

This app is out to prove that Singapore is anything but boring

And Sugar helps SMEs in the process too.

by MARIANNE ESTIOCO
2 Jun 2015 | 1210 views

Hey, boss: This startup wants to be your all-around sidekick

Hey, boss: This startup wants to be your all-around sidekick

Alpha7 wants SMEs to join the Cloud.

by STAFF REPORTER
16 Jun 2015 | 1164 views
 

Get your head in the game: Testing challenges await the Internet of Things

Get your head in the game: Testing challenges await the Internet of Things

Industry experts share their concerns over security and testing standards.

by LEE ANNE BABIERRA
4 Jun 2015 | 1075 views

How do you like getting cash rebates when shopping online?

How do you like getting cash rebates when shopping online?

ShopBack introduces this concept in Southeast Asia.

by STAFF REPORTER
21 Jul 2015 | 1051 views
 

Need some help? This app lets you book a cleaner in five minutes flat

Need some help? This app lets you book a cleaner in five minutes flat

Sendhelper is the new breed of booking apps.

by MARIANNE ESTIOCO
26 May 2015 | 957 views

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Book a reliable cleaner in seconds with Helpling.

by MARIANNE ESTIOCO
22 Jun 2015 | 919 views
 

Former strategy advisor reveals aspirations with his newest mobile app startup

Former strategy advisor reveals aspirations with his newest mobile app startup

Rediscover and fall in love with your city all over again.

by LEE ANNE BABIERRA
22 May 2015 | 905 views

Asian corporates face tough balancing act as sustainability issues mount

Asian corporates face tough balancing act as sustainability issues mount

Discover the changing face of Asian CSR.

by MARIANNE ESTIOCO
1 Jul 2015 | 529 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter