Chart of the Day: New supply of industrial space hit 3.24 million sq ft in H1

Lagging demand brought occupancy rate 0.2 ppt down to 89.7%.

This chart from Colliers International shows that net new supply of industrial space totalled 3.24 million sq ft in H1 2018 amidst the net withdrawal of 1.62 million sq ft of single-user factory spaces in Q1 2018.

Meanwhile, the lag in demand resulted in a marginal decline in the occupancy rate of 0.2 percentage points HoH to 89.7% in H1 2018,

JTC had noted that future new supply is set to ease from the record supply of 20.9 million sq ft completed in 2017. The supply pipeline for warehouses and single-user factories is mainly found in the West Region, whilst factory stock is concentrated in the West, North East, and North Regions.

“With tapering supply coming on-stream from 2019 onwards, we expect average rents and prices to stabilise across all segments,” the firm noted.

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