Warehouse occupancy and rents to fall amid increased supply

In 1Q24, rents rose 2.0% QoQ, whilst occupancy fell to 91.1%.

Warehouse occupancy rates and rents are set to decline further amid rising supply.

In a report, Colliers noted that more space will hit the market due to developments completed in 2025 and some tenants downsizing or relocating because of high rents.

“Occupiers might also be resistant to the higher rents and may opt to develop sites themselves, partner with a developer, or relocate to cheaper locations,” Colliers added.

In 1Q24, warehouse rents increased 2.0% QoQ, whilst occupancy declined to 91.1% from 91.6%.

Colliers, however, pointed out that the increase was due to tight supply, especially in the prime logistics space.