Chart of the Day: Warehouse rents down 1.5% in Q2

Rents for first-storey and upper-storey multi-user factories also slipped 0.5%.

This chart from Edmund Tie & Co. (ET&Co) shows that rental rates of warehouses/logistics facilities fell 1.5% to $1.53-$1.68 psf in Q2 from $1.56-$1.71 psf in Q1, leading the decline industrial types.

Leasing costs for first-storey and upper-storey multi-user factories also slipped 0.5%. Rents for hi-tech industrial facilities and non-city fringe business parks remained flat in Q2. Only city-fringe business parks saw rents increase by 1% in the same period to $4.30-$4.80 psf from $4.25-$4.75 psf in Q1.

In a separate report, Knight Frank stated that the Kallang, Geylang and Bendemeer industrial cluster witnessed the largest rent decline at 2.6% QoQ, followed by the Pioneer and Tuas cluster where rents fell 2.2%.

The annual average industrial supply is projected to reach 7 million sqft NLA from Q2 2019 to 2022. This figure is almost half past its three- and five-year average supply.