Chart of the Day: Factory and warehouse leasing volumes rose 6.7% to 2,883 deals in Q2

There was a spike in leasing activity in Geylang and Bedok Planning Areas.

This chart from Savills shows that the leasing volume for factory and warehouse space rose by 6.7% YoY to a record high 2,883 deals in Q2.

This was mainly attributed to the increased leasing demand for single and multiple-user factories. Notably, there was a spike in leasing activity observed in Geylang and Bedok Planning Areas in the second quarter as compared to the previous quarter, according to Savills.

The increase in leasing activity for single-user factories corresponded with positive demand for single- and multiple-user factory space in Q2. Despite this, Savills noted that supply outplaced demand for single-user factory space, resulting in an increased vacancy rate of up to 0.3% ppt QoQ to 9.1% in Q2; whilst vacancy rate for multiple-use factory space eased 0.9% ppt QoQ to 12.8% over the same period on the back of major completions such as Qualcomm Building at Kallang.

Overall, Savills said that the rental market remained stable with the average monthly rent for factory and warehouse space unchanged at $1.13 psf in Q2. However, industrial transacted value fell during the quarter despite a more active sales market, reflecting a possible drop in transacted prices.