Industrial leasing volume down 5.3% YoY in Q2

Rents increased 0.6% QoQ to $3.96 per sq ft.

Industrial leasing volume declined 5.3% year-on-year (YoY) to 3,123 tenancies in Q2 2024, Savills reported.

In the same period, Savills’ industrial property prices grew slowly, with freehold and 60-year leasehold property prices increasing 0.5% YoY to $830 per sq ft (psf) and 0.7% quarter-on-quarter (QoQ) to $516 psf, respectively, whilst 30-year leasehold property prices rose 0.1% QoQ to $325 psf.

Meanwhile, Savills’ prime industrial rents rose 1.2% QoQ to $2.26 psf for multiple-user factories in Q2, whilst warehouse and logistics property rents grew 0.6% QoQ to $1.68 psf. The average monthly rent for the period increased by 0.6% QoQ to $3.96 psf. 

Industrial sales activity in the strata market surged 42.9% QoQ to 513 transactions in Q2, the highest in nearly two years.

Savills expects the manufacturing sector to be similarly affected, although rents for the segment may rise due to the low supply of multi-user factories.

Savills also expects a 0% to 3% increase for the warehouse and logistics sector this year.