Massive warehouse supply glut threatens industrial landlords

Occupancy will feared to crash to 10-year low.

A huge supply of warehouse space is set to hit Singapore over the next three years, according to a report by CIMB.

CIMB said that the warehouse segment is the weakest link in the struggling industrial leasing sector, as an estimated 1.2 million square metres of new warehouse space is projected to be completed.

This represents 13.3% of existing stock, CIMB said.

The bulk or 76% of this additional capacity is scheduled to be completed in 2016-17.

“Based on a 10-year average annual absorption rate of 280,000sm, occupancy could fall from the present 91% to 88%, a level not seen since 2006, before stabilising. Hence, we expect warehouse rents to decline by up to 5% p.a. over the next two years,” said the report.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia