Industrial landlords struggle as manufacturing firms scale down

Sub-par performance will continue in 2015.

After turning in a sub-par performance the previous year, industrial landlords will continue to grapple with a challenging business climate as more manufacturers scale down.

According to CBRE, there were fewer new enquiries in the first quarter as landlords become more open to negotiations and adopt greater flexibility when it comes to rental arrangements.

CBRE data show that strata sales activity shrunk in the first quarter and recorded its seventh consecutive quarter of decline.

"Occupiers and investors alike were in short supply and difficulty finding tenants has emerged as yet another dampener in the lethargic strata market," CBRE stated.

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