Almost half of it will be from multiple-user factories.
This chart from Colliers, citing data from JTC, shows that new industrial supply will hit 18.8 million sqft in 2020.
Most of the said figure will consist of multiple-user factories at 47%, before tapering off from 2021 onwards. Vacancy rates are also projected to slightly increase in 2020, as demand could lag supply. Vacancy would then decline after 2022 as supply subsides.
Furthermore, Colliers stated that from JTC’s data, island-wide industrial net supply is projected to be front-loaded in 2019-2020, adding 31.5 million sqft (net) or 6% to total stock before easing in 2021.
Meanwhile, the report added that around 10.2 million sqft of industrial space will be added in H2 2019. About 77% of it will be single-user factories. Assuming the efficiency is at 90%, the total completed industrial space in 2019 would be around 15 million sqft, which is 2.5 times larger than that of 2018.
New supply across all industrial types is set to further intensify in 2020 to 18.8 million sqft (1.7 million sqm, gross), led by multiple-user factories at 47%, before tapering off from 2021 onwards.
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