Any takers? Industrial occupancy rates bogged down by space spillover

Expansion is too much of a good thing for industrial SREITs.

Singapore’s industrial space will increase by 6.8 million square meters between 2014 and 2015. A report by Fitch shows that this 16% increase will constrain rental increases until the next year.

Most of these new spaces will come on stream between 2014 and 2015.

Occupancy rates for 1Q14 remain healthy at over 90%, but even this figure is still far from 2009’s occupancy peak.

According to the report, “The sector’s property assets grew by 7% in 2013, to SGD18.8bn. Most of this growth was on account of property revaluations, with about a third of the growth stemming from asset enhancement initiatives. Industrial SREITs accounted for 21% of sector assets in 2013, and consist of seven entities.”
 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.


The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.


So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.