Chart of the Day: Industrial rents down 1% to $1.98psf in Q2

The Kallang, Geylang and Bendemeer cluster saw the largest rental decline to $3.10psf.

This chart from Knight Frank shows the average monthly gross rentals of the industrial space per cluster fell 1% QoQ to $1.98psf from $2psf in Q1.

The rental decline was led by a 2.6% QoQ decline in Kallang, Geylang and Bendemeer areas from $3.18psf in Q1 to $3.10psf in Q2. Amongst the clusters shown, only the areas of Bukit Merah, Alexandra, Jalan Kilang and Pasir Panjang saw rents grow by a meagre 0.5%.

Knight Frank stated that the fall in rents was no thanks to the contraction in the electronics sector and moderated economic outlook. It can also be blamed on the lower new supply that came in Q1.

However, there was an uptick in total number of tenancies from April to May which rose 5.2% YoY to 1,635 factory units. The number of warehouse tenancies, on the other hand, slipped 2.6% YoY to 137 units over the same period.