Prime logistics rents up 8.6% in H1 amidst weak manufacturing output

Leasing activity is also stable.

The leasing activity for prime logistics remains stable in the second quarter of 2023 is stable amidst expansions and new set-ups picking up, CBRE said.

"Expansionary activity was seen by 3PLs and wholesale trade in the logistics and warehouse segment. There were new set-ups by the biotechnology and semiconductor industries in new hi-tech spaces," read the study.

There are no new completions making occupancy close to full for the logistics market in Q2 2023.

Amongst all industrial segments, prime logistics posted the highest rental growth of 4.8% QoQ as 3PL companies continue to drive demand for ramp-up logistics assets.

Occupiers are also ramping up to renew leases with no supply expected in the second half of the year.

Meanwhile, average warehouse and factory rents grew by 2.7% and 1.7% QoQ, respectively.

CBRE said industrial land supply will fill up from 2026 onwards.

Against this backdrop, businesses are cautious about operational costs amidst growing inflation.

Follow the link for more news on

CBRE

Also Read

One Sophia sells 30% of units at weekend launch

SLA launches tender to revitalise Tanjong Katong Complex

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit