The largest transaction was the $227.5m sale-and-leaseback deal with LTH Logistics.
Industrial transactions valued above $20m plunged 57% to $424.3m in Q1, as the sector took a heavy hit from a slowing manufacturing sector and lower demand for industrial space, according to an Edmund Tie & Co. study.
The largest transaction in Q1 was a sale-and-leaseback deal with LTH Logistics on Jurong Island valued at $227.5m ($321 psf GFA). Another notable transaction was a vacant land site for a build-to-suit project with 42,310 sqft GFA for Grab’s HQ at one-north business park by Ascendas REIT worth $84m ($682 psf site area).
The report noted that despite these conditions in the industrial property sector, the private industrial market has stabilised with slight improvements in occupancy rates thanks to a slowing net supply that fell 8% in the quarter.
Occupancy rates of multi-user factory, single-user factory, business parks and all industrial spaces went up 0.3%, 0.4%, 0.9% and 0.3%, respectively. Only warehouses saw a decline by 0.4%.
Demand and supply for warehouses reversed from negative to positive territory as net supply outpaces demand. This was driven by the take-up of recently completed warehouses underpinned by demand from e-commerce and logistics services.
Demand and occupancy for business parks continued to increase, especially from technology and R&D companies and firms that do not require a presence in the CBD.
Meanwhile, rental rates have remained flat, with some increases for first-storey multi-user factory, hi-tech industrial and business park spaces of between 1% and 1.5%.
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