The shift towards Industry 4.0 is fuelling demand for logistics facilities.
This chart from OCBC Investment Research (OIR) with data from JTC shows that the looming supply of industrial space coming onstream in 2019 will be higher than 2018 as about 1.8 million sqm of industrial space will be available by Q42018 and 2019.
Around 447,000 sqm of industrial space already came online in January-September 2018.
Out of the 1.8 million sqm of industrial space in the pipeline, 1.2 million sqm will be entering the market by 2019. The conglomerate new supply represents about 4% of the current industrial stock.
“To put things in perspective, over the past three years, the average annual demand and supply were 1.2m sqm and 1.6m sqm, respectively,” OIR explained.
Meanwhile, about 302,000 sqm of multiple-user factory space is expected by Q4 2018 and 2019. OIR noted that the annual demand and supply hits about 254,000 sqm and 369,000 sqm, respectively, over the past three years.
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