Chart of the Day: Business park rents grew 1.1% in Q3

It will continue to benefit from tech demand and shift to non-CBD locations in 2020.

This chart from Jefferies reveals that business park rents expanded 1.1% YoY in Q3 2019, driven by robust demand for new and high-tech space. In contrast, generic flatted factories and older cargo lift warehouses have fallen, reflecting on rents.

The price and rental trend is expected to continue in 2020, with business parks benefiting from tech demand. Demand is also expected to shift to non-CBD locations.

Demand-supply outlook is relatively favorable for warehouses, neutral for business parks and negative for flatted factories, according to Jefferies. “Warehouse rents may see a recovery depending upon resolution of trade issues while flatted factories are likely to decline,” said Jefferies equity analyst Krishna Guha.