Savills: High-spec industrial rents at the highest point since 2012
Based on a basket of commercial properties tracked by Savills, the costs for 60-year leasehold and freehold commercial properties increased by 1.2% q-o-q to $463 psf and $758 psf, specifically. “Aside from the longer lasting tenure and nature of estate leases, the surge in costs was driven by the solid rate development for food factory properties,” the Savills report adds.
“Need for commercial spaces, specifically modern high spec storehouses, along with high-spec commercial and company parks with great connection and features will certainly still be derived by growth industries such as the logistics, food, precision technological innovation and biomedical fields,” states Alan Cheong, executive supervisor of research study at Savills.
Next year, commercial rents are expected to enhance, paired with the increase in service charges, and even the upward momentum in leas will proceed as property owners hand down greater business expenses to lessees, claims Cheong.
The pick-up in high-spec industrial rental fees is in line with the general rise seen across the industrial market, with warehouse including logistics properties reporting a quarterly rise of 1.4% in 2Q2022 to 2.8% in 3Q2022, where standard rents set at $1.51 psf.
A Savills Singapore research study located that the common regular monthly lease for high-spec commercial space was $3.69 psf in 3Q2022. This is a 1.1% quarterly boost and also go with the documented q-o-q growth in 2Q2022. The rental price has risen because Savills initiated gathering this data in 2012.
The working as a consultant projects rents of prime storehouse and logistics properties will increase 2% to 5% y-o-y for every year in 2022 and even 2023. At the same time, multi-user factories may regulate from 10% to 12% y-o-y rise in 2022 to 4% to 6% in 2023.