Industrial vacancy rose 8.8% YTD

Occupiers remain cost-conscious amidst global uncertainties.

Industrial vacancy rose 8.8% in year-to-date (YTD) 2025, according to JLL.

The increase was driven by the addition of 1.0 million sq ft of new supply, as well as cautious occupiers amidst global uncertainties.

Gross effective rent stood at $11.71 per sq ft per month (psf pm), growing 0.6% year-on-year (YoY).

Occupiers also remained cost-conscious in Q1 2025, whilst some landlords were more flexible during lease negotiations. This has kept the average islandwide logistics/warehouse rent stable for the third consecutive quarter. 

JLL expects sustained investors’ interest in higher-yielding assets could tighten logistics/warehouse yields by the end of 2025.

However, JLL said that occupiers may remain cost-conscious and rents may stagnate for the rest of 2025 due to an escalating global tariff war.