The industrial market faced a surge in supply.
Warehouses led the decline in industrial rentals by 4.9% in the third quarter of 2017, UOB Kay Hian said.
According to its report on Built Environment & Property Prospects Seminar 2018, declines also showed in multiple-user factory rentals by 3.3% and single-user factory rentals by 2.7%, mainly due to the surge in supply.
UOB Kay Hian analyst Peihao Loke said, "Although 2018 will see a surge in single-user factory supply, it is not of much concern. Single-user factories generally cater to generalist industrialists, and can attain higher occupancies (compared with multiple-users)."
Meanwhile, business parks are experiencing an increase in rentals, amid the lack of new supply in the last two years.
UOB cited Knight Frank, which said that demand has been supported, with certain trades like finance and technology growing into business parks.
Moreover, some financial firms have relocated their back-end operations to business parks, amidst increases in office rentals.
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