COTD: Logistics rents steady in Q3

Conventional factory rental growth moderated to 0.4% QoQ amidst cautious sentiments.

Warehouse and prime logistics rents grew by 1.1% and 0.9% quarter on quarter, respectively, during the third quarter of the year, according to a Cushman & Wakefield report.

Whilst overall leasing enquiries remain subdued, occupiers are exploring the consolidation of existing warehouse footprints at prime logistics developments to enhance operational efficiency.

Meanwhile, conventional factory rental growth moderated to 0.4% QoQ amidst cautious manufacturing sentiments.

Further, high-tech rents grew by 1.8% QoQ, as the vacancy rate declined. Business park rents remained largely stable, whilst suburban business park rents saw no change.

“The overall industrial supply pipeline looks reasonable, with higher supply for single-user factories and warehouses, though they have been largely pre-committed,” the report said.

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