Industry space to cross 1 million sqm as factory stock expands

Single-user factories make up over half of the new supply.

An estimated 1.0 million sqm of industrial space is expected to be completed in 2026, based on planning approvals as of the end of December 2025.

Single-user factories make up over half (53%) of the new supply, followed by warehouses (29%), multiple-user factories (16%), and business parks (2%), according to a JTC Corporation report.

An additional 2.5 million sqm of industrial space is expected to be completed in 2027 and 2028, bringing the average annual supply from 2026 to 2028 to around 1.1 million sqm.

By comparison, the average annual supply and demand of industrial space were around 0.8 million sqm and 0.6 million sqm, respectively, over the past three years.

“Barring a sharp economic downturn, occupancy is likely to remain stable and rental rates are expected to continue to moderate,” the report said.

In the fourth quarter of 2025 (Q4 2025), the overall occupancy rate for industrial space fell 0.4 percentage points (pp) to 88.7%.

The decline was primarily attributed to strong completions, leading to an increase in total industrial stock by 345,000 sqm and reversing the decrease in industrial stock in the previous quarter.

For the full year of 2025, the overall occupancy rate dropped by 0.3 pp, as strong completions added 0.9 million sqm of total available stock and outpaced the 0.7 million sqm increase in occupied stock.

Meanwhile, the rental index for industrial space recorded a slower 0.5% growth in Q4 2025 compared to the previous quarter. The index increased 2.4% in 2025, compared with 3.5% in 2024, marking the slowest annual growth since 2021.

The price index for industrial space rose 1.4% in the same quarter and 5% for the year.

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