Chart of the day: Number of tenancies for single-user factory hit 130 in January-February

Overall, the industrial property market has stayed largely flat during the quarter.

This chart from Knight Frank shows rental transaction volume of factory and warehouse units, whereas the rental transactions of single-user factories saw the largest jump as it went up to 130 transactions YoY in Jan-Feb 2019 from 94 tenancies in 2018, brought by lower rents.

On the other hand, warehouses and multi-user factories saw a sharp decline in leasing activity due to festivities. On a YoY basis, there were more tenancies concluded in Jan-Feb 2019 for warehouses, increasing by 0.5%. The vacancy rate for warehouses have also steadily declined, from 12.5% in Q3 2017 to 10.5% in Q4 2018.

Overall, Knight Frank stated that the industrial property market has stayed largely flat in Q1 2019 as average rents for islandwide industrial space were at S$2.00 psf pm amidst the uncertain environment.

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