Chart of the Day: Industrial property supply to hit 26.2 million sqft by 2022

Occupancy and rental rates are expected to receive support with a tapered supply.

This chart from EDMUND TIE shows that there will be 26.2 million sqft NLA of private industrial development in the pipeline from Q4 2019 to 2022. This translates to an annual average of 8.1 million sqft, falling below the past 3-year average of 13.2 million sqft and past 5-year average of 15.3 million sqft.

“With a tapered supply in the pipeline over the next few years, occupancy and rental rates are expected to receive some support,” the report stated.

Five business park developments totalling 1.4 million sqft are in the pipeline, including maintenance work to the existing development at 13 International Business Park by Pension Real Estate Singapore.