Chart of the Day: Industrial warehouse rents down 3% in Q2

Expect rents to face further pressure.

This chart from CBRE shows that Singapore rents of industrial factories and warehouses are bucking the trend seen in the Asia Pacific region.

For the past quarter, rents for ground floor factory went down by 4.1%, whilst upper floor factory rents registered a worse decline of 5.1%. 

Meanwhile, industrial ground floor warehouse rents dipped 3% in the quarter. Upper floor warehouses also saw a decline in rents at 3.8%.

"Unless there is an increase in absorption of space by end-users, rents are likely to face further
pressure as new supply over the next six months weigh on vacancy rates," CBRE said.

It added, "This is especially so for buildings with upcoming sale and leaseback expiries; the search for anchor subtenants to occupy the available space will be challenging given soft demand conditions."