Chart of the Day: Acquisition value of industrial properties plummeted by over 60%

And 2014 doesn't bode well too.

According to Macquarie Research, both logistics facilities and business parks should see sizeable supply growth of over 10% in 2014, but pre-commitment rates are strong at 85% and 76%, respectively. 

As a result, occupancies should remain stable at 92% and 80%, respectively. Factories are likely to grow by a modest 2%, and with a healthy pre-commitment rate of 76% occupancy should hover at the 93% mark.

Here's more from Macquarie Research:

Overall, we expect industrial rents to either remain flattish YoY, or grow at single-digit levels. This bodes well for industrial SREITs, as they should continue to generate positive rent reversions given their under-rented portfolios and embedded annual rent escalations.

However, we believe industrial SREITs will continue to face challenges in making acquisitions, given the newly-implemented government policies, mainly the introduction of sites with shorter lease tenures and upfront land premium.

In 2013, acquisition value declined by over 60%, and this downward trend could continue into 2014.

Hence, we expect SREITs to undertake more AEIs. JTC’s increased supervision of prospective tenants’ ability to add value and improve productivity has also made it harder to fill vacant space.