Business park market logs net absorption of 186,982 sq ft in Q1 2022: CBRE
This is a reversal from the negative take-up in the last quarter.
As demand improved across all submarkets, the business park market saw a positive net absorption of 186,982 square feet in the first quarter of 2022, which is a reversal from the negative take-up in the previous quarter, according to commercial investment firm CBRE's research.
In addition, vacancy rates for the city fringe submarket went down for the third consecutive quarter to 4.7% in the first quarter of 2022 from 7% in the second quarter of 2021.
As for the rest of the island submarket, vacancy rate inched up 0.9 percentage points, on a quarterly basis, to 18.1% on the back of higher vacancies in newly completed buildings. CBRE, however, noted an improvement in occupancy in International Business Park, Changi Business Park, and Singapore Science Park.
With strong demand and limited vacancies in the city fringe submarket, rents rose for the fourth consecutive quarter by 0.8% quarter-on-quarter to $5.95 per square foot (psf) monthly.
For the rest of the island submarket, rent remained at $3.65 psf/month as landlords still focused on increasing occupancy. Overall, CBRE said the rental gap between City Fringe and Rest of Island submarkets widened further during the first quarter of 2022.