Industrial prices and rent to increase between 3% to 5% in 2022

In 2021, price and rent indices increased by 4.4% and 2%, respectively.

Industrial prices and rent will likely increase between 3% to 5% in 2022, Knight Frank said.

This after the industrial price and rent indices increased by 4.4% year-on-year (YoY), and 2% YoY in 2021, respectively.

Overall industrial occupancy rate likewise rose to 90.1% at the end of 2021 from 89.9% in 2020.

Knight Frank said the gains in the sector will likely continue in 2022, especially with the completion of some 29.9 million sf of industrial space.

Single-user factory space makes up about 44% of the total space to be completed, whilst multiple-user factory space comprises 36% and warehouse and business park space make up the remaining 20%.

In terms of investment activity, Knight Frank said it will likely be driven “by end-users looking for manufacturing facilities for their own use, as well as quality warehouses that boast high-quality specifications that facilitate growing supply chain demand.”

In 2021, biomedical manufacturing contributed the “second-largest amount of investments” for the year, with the launch of Labcorp’s bioanalytical lab facility. A total of $11.8b fixed asset investment commitments were secured in 2021.

Meanwhile, Knight Frank also sees improvement in the transport engineering sector in 2022 if “overall recovery and health measures stay on the current trajectory of transitioning into a new norm, barring any recurring waves of infections or new variants.”