Industrial REITs vacancy rates pegged to increase 8-9%

That's over the next two years.

According to DBS, based on its analysis and taking into account pre-commitments and projected new demand, faced with an increasing supply outlook, it believes that the industrial REITs will see vacancy rates head towards 8-9% over the next two years, as new supply progressively completes in the coming years.

As the influx and pace of completions are skewed over FY14-15F, this is likely to mean that spot rental performance will be flattish at best.

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