Chart of the Day: Industrial leasing volumes up for 11th straight quarter in Q1

There were 2,417 deals for factory and warehouse space during the quarter.

The industrial leasing market rose for the eleventh consecutive quarter in Q1, according to a report from Savills. There were a total of 2,417 deals sealed for factory and warehouse space, up 3.1% from the previous year.

Also read: Industrial property sales jumped 27.6% in Q1

"The increase was led mainly by higher leasing demand for single-user factory space due to the segment’s declining rents," Savills said in a report, adding that the protracted weakness of the economy and the manufacturing segment drove industrialists to capitalise on low rents than spending money on purchasing space. 

Strong leasing demand for single-user factory space along with removal of warehouse space resulted in improved occupancy rates for both segments. On the other hand, rates for multiple-user factory space fell due to poor take-up in Central Planning Region. 

On the supply side, the supply pipeline is set to taper off over the next three years, according to a report from Edmund Tie & Co. The annual average industrial supply of circa 7 million sqft net lettable area (NLA) for the period Q2 2019 to 2022 is almost half the past three-year average of 13.2 million sqft NLA.