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Chart of the Day: High-tech industrial rental growth set to outpace logistics

E-commerce is steadily driving leasing activity.

The high-tech segment of Singapore's industrial sector is expected to outperform the traditional logistics segment in terms of rental growth from 2018-2022 with e-commerce players and third party logistics providers steadily driving positive take-up levels, according to a report from Deutsche Wealth Management Services. 

Also read: Rents for high-specification industrial spaces grew 2.1% to $2.9 psf in H1

Leasing costs in the high-tech segment are poised to grow from 2.7% in the four-year period versus a slightly lower 2.3% for the logistics sector. 

"The rise of e-commerce trends is also gradually taking place in Southeast Asia, driven by the region's rapidly rising middle class population and consumption trends," DWS said. 

Also read: Space supply for business parks could double by 2030

Singapore's industrial property rents, however, are still on the higher end compared to the region's expected industrial expansion which settles at around 1.0-3.0% per annum.

South Sydney and Beijing lead the industrial segment in terms of rental growth with an expected 2.9% expansion. On the other hand, rents are poised to slow in West Adelaide and East Perth by 0.3% and 1.4% respectively due to weak leasing demand. 

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