Roughly 68% of the supply are owner-occupied type.
An estimated 22.2 million sq ft of private industrial development space, similar to 300 soccer fields in size, is expected to come online from Q4 2018 to 2022, according to a report from Edmund Tie & Company.
Around 447,000 sqm of industrial space already came online in January-September 2018 with another million sqm set to enter the market by 2019, data from OCBC Investment Research show. “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 said.
ET&Co notes that around 68% of the new supply from Q4 2018 to 2022 are owner-occupied or comprising single-user industrial developments and extensions, additions and alterations to industrial properties.
Warehouse developments feature prominently in the supply for 2020 whilst single-user and mutiple-user industrial developments will constitute the entire supply for 2021. By 2022, only multiple-user industrial developments will account for new space.
"[D]emand for high tech and business park space is expected to remain positive, especially for those that are well located with easy access to transportation nodes and amenities and/or located in the city fringe area," the report's authors said, adding that demand for data centres will also persist following heated activity from tech giants Google who is expanding its third data centre and Facebook who invested $1.4b to build its first data centre in Singapore.
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