Industrial sales drop 16.4% QoQ to 381 deals in 3Q23

Sales value likewise fell, dropping 13.9% QoQ to $922.7m.

Industrial sales activity slowed down in 3Q23, with volume dropping 16.4% to 381 and value falling 13.9% QoQ to $922.7m.

Some notable sales during the quarter were the sale of Sime Darby Business Centre for $68.0m ($818 psf) in July and Reebonz Building for $39.0m ($453 psf) in August.

Compared to sales, leasing activity of the industrial market was more stable during the quarter, recording a moderate pick up in average rents for all property types.

“Despite the shrinking electronics sector, occupancy levels remain stable without noticeable signs of end-users giving up significant volumes of space,” Knight Frank commented.

Quality warehouse spaces and facilities remained steady in 2023, said Knight Frank.

“Warehouse median rents increased for the sixth consecutive quarter touching $2.00 psf pm in the current quarter, while rental transaction volume was fairly consistent with 456 units,” the expert said.

“The promise of soon-to-be-completed stock, combined with inventory being cleared from existing storage spaces have eased some of the demand pressures for quality logistics facilities in 3Q23,” it added.