Chart of the Day: Check out how food factory rents can cost
Factories with freezer and refrigerated facilities can fetch 25-35% higher price than the average.
This chart from Colliers showed that the monthly rent per square foot of factory rents in major food zones in the East, North East and Central regions can range around $1.8-2.4 psf as compared to prices in the West Region and North Region at $1.5-2.4 psf and about $1.45 respectively.
The East, North East and Central regions outperform the rents in the West Region and North Region due to its closer proximity to the city center.
Colliers also observed that well-located food factories with better specifications like freezer and refrigerated facilities can fetch about 25-35% higher price than average food factories. The report cited WTT Trading which sold its food factory with a cold store at 3 Mandai Link for $325 psf last March.
“In general, we expect food factories to offer attractive yields of about 6-7% (for 30 year land tenures) to qualified investors, comparing favorably to 3.25-3.65% for office properties and 4.4-4.9% for retail properties,” the report stated.
Rents and prices of food factories are expected to remain stable over the next three to five years.