Rental growth for prime logistical properties expected to moderate in 2023

Occupiers are more cautious in expanding due to ongoing global conflict.

With the ongoing global political woes, property firm, CBRE, said occupiers are seen to be more cautious with their expansion activities, which could moderate rental growth for prime logistical facilities.

In its report on industrial property rents in the third quarter (Q3) of 2022, CBRE said few prime logistics projects will be finished by next year but most of the space was already reserved.

In Q3 2022, CBRE said prime logistics facilities, which are areas for logistics operations and with large-scale buildings, registered the highest growth across all industrial properties, with 2.6% increase.

Also, under the segment, average warehouse rents went up by 1.8% quarter-on-quarter (QoQ), followed by rents in factories, which grew 0.6% QoQ.

For this quarter, “leasing momentum remained healthy” especially for e-commerce leasing activity.

CBRE said the pharmaceuticals and aerospace segments are rolling out expansion plans.

There are also an increased enquiries for cold storage because logistics occupiers are looking to mitigate rising food prices by building stronger supply chains.

But the lack of suitable logistics facilities has limited the take-up, CBRE said.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!