Industrial prices and rentals continue to rise amidst drop in occupancy

In 3Q23, prices rose 6.2% YoY, whilst rentals increased by 9.3% YoY.

Prices and rental indices of all industrial space rose in 3Q23, data from JTC showed.

In 3Q23, prices rose 1.4% QoQ and 6.2% YoY, whilst the rental index jumped 2.0% QoQ and 9.3% YoY.

Multiple-user factory and warehouse segments, which recorded 2.0% QoQ (11.1% YoY) and 2.4% QoQ (9.1% YoY) increases, drove the increase in rentals for the quarter.

On the flip side, occupancy fell during 3Q23, slipping by 0.2 percentage points QoQ to 88.9%. YoY, occupancy fell by 0.8 percentage points,

JTC attributed the overall drop to declines in occupancy across all industrial segments except warehouse.

JTC added that the drop in occupancy in 3Q23 was primarily due to new supply outpacing new demand.

Over the past year, the total available stock of industrial space rose by 1.3 million sqm, outpacing the 0.8 million sqm increase in total occupied stock.