Industrial occupancy rate flat at 89% despite gains in some segments

Multiple-user factory and business park segments saw increased occupancy in Q3.

The overall occupancy rate for the industrial property market remained unchanged at 89% in Q3 2024 despite increases in multiple-user factory and business park segments.

JTC figures showed that occupancy rose 0.3 percentage points to  91.6% for the multiple-user factory and 0.5 percentage points to 78.8% for the business park sequentially.

However, the occupancy rate edged up by 0.1 percentage points year over year, largely due to the multiple-user factory, which recorded a 1.9 percentage point increase.

Meanwhile, prices and rentals of industrial spaces continued to rise in Q3, albeit slower, increasing by 0.5% QoQ (2.1% YoY)  and 0.3% QoQ (4.8% YoY), respectively.

JTC said 0.2 million square meters (sqm) of new industrial space will come in the pipeline by the end of 2024 and 1.6 million sqm in 2025. 

“Whilst the new supply of Industrial space continues to come on-stream in 2024, occupancy rates are likely to remain stable,” JTC said.