Chart of the Day: High-tech industrial rental growth set to outpace logistics

E-commerce is steadily driving leasing activity.

The high-tech segment of Singapore's industrial sector is expected to outperform the traditional logistics segment in terms of rental growth from 2018-2022 with e-commerce players and third party logistics providers steadily driving positive take-up levels, according to a report from Deutsche Wealth Management Services. 

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Leasing costs in the high-tech segment are poised to grow from 2.7% in the four-year period versus a slightly lower 2.3% for the logistics sector. 

"The rise of e-commerce trends is also gradually taking place in Southeast Asia, driven by the region's rapidly rising middle class population and consumption trends," DWS said. 

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Singapore's industrial property rents, however, are still on the higher end compared to the region's expected industrial expansion which settles at around 1.0-3.0% per annum.

South Sydney and Beijing lead the industrial segment in terms of rental growth with an expected 2.9% expansion. On the other hand, rents are poised to slow in West Adelaide and East Perth by 0.3% and 1.4% respectively due to weak leasing demand.