Chart of the Day: Industrial property supply to weaken in 2021

Factory spaces may account for three-fourth of the overall supply.

This chart from Colliers shows that the supply of industrial spaces is projected to taper off to around 6.9 million sqft (642,000 sqm, net), after doubling in 2020 to 20.2 million sqft or about 4% of total stock.

However, the supply is also expected to recover in 2022 to 13.7 million sqft (1.3 million sqm, net). About 76% of the industrial supply in the five-year period 2020-2024 could be factory spaces.

Furthermore, Colliers stated that average monthly factory gross rent fell by 1.8% YoY to $1.67 psft, whilst warehouse-logistics also slipped by 1.6% YoY to $1.23 psf. In contrast, monthly business park rents inched up by 1.4% YoY to $4.37 psf on tight supply whilst independent high-spec industrial buildings saw monthly rents climbing 1.4% YoY to $2.94 psf.