Industrial rents down 2% in 2014 after climbing for four consecutive years

But prices increased for the fifth straight year.

JTC’s All Industrial Property Rental Index recorded a 2% decline in rents for 2014, following four consecutive years of rent increases.

However, the all Industrial Property Price Index showed that industrial property prices climbed for the 5th consecutive year, by 3.5% in 2014, slightly faster than 2013’s 3.2% gain.

According to Colliers, the outlook of the industrial property market is expected to be mixed in 2015, taking into account the fragile global economic outlook and lingering risks.

“Rents for conventional multi-tenanted developments may ease in 2015 due to mounting supply pressures. However, rents for properties with higher building specifications such as those located within the business parks and independent high-specs buildings, could see some upside potential due mainly to a tightening in supply,” stated Chia Siew Chuin, Director of Research & Advisory at Colliers.