Chart of the Day: Warehouse leasing volume skyrocketed 67.4% to $21.24m in 2018

The West Region recorded a 99.7% increase in its leasing volume.

This chart from CBRE Research shows that leasing volumes for warehouses soared 67.4% YoY to $21.24m in 2018 with deal counts increasing by 33.5% YoY to 1,671 deals.The research firm noted that both the East and West regions registered the strongest leasing volumes.

“Despite most of the completed supply in 2018 being in the West, take-up was healthy as leasing volume in the West skyrocketed 99.7% to $11.82m,” CBRE Research said.

For 2019, the research firm believes that prime logistics rents could stabilise and improve 1.5% YoY to $1.36 psf/month and could continue to rise to $1.38 psf/month by 2020.

“After which, rents are expected to stay flat in 2021, in tandem with the slowdown in exports and GDP growth,” CBRE noted. “With the onset of the ballooning US-China trade war, the impact may remain questionable.

As of 2018, occupancy rate of warehouses stood at around 89%.