Chart of the Day: Industrial tenancies down 37.6% in Q1

Rental transactions fell as manufacturing firms halted physical footprint expansions.

This chart from Knight Frank shows that the tenancies of industrial properties dropped 37.6% QoQ to 1,223 transactions in Q1. It is said to be the highest QoQ decline since Q4 2002 when business sentiments dropped from oil prices plummeting.

Simultaneously, the fall in rental transactions could be attributed to uncertainties arising from manufacturing firms halting physical footprint expansions.

In addition, median rents of multiple-user factories have stayed flat in Q1. Factories with tenures 60 years and above, including 999-year leasehold and freehold assets, saw a marginal uptick of 2.1% QoQ in median prices in Q1 after consecutive declines in the previous two quarters.