Chart of the Day: Industrial space supply to drop 50% from 2018 onwards

Supply is still coming from the warehouse and factory segment and will need time to be absorbed.

This chart from DBS Equity Research shows that the supply of industrial space remained elevated in 2017 but will drop close to 50% from 2018 onwards.

From nearly 2,500 sqm of supply in 2017, it is expected to drop to around 1,100 sqm in 2018 and to around 800 sqm in 2019.

Most supply is still coming from the warehouse and factory segment and will need time to be absorbed.

"The sector with the least supply pressure will be business parks, which will have minimal supply being completed in the next few years," DBS said.

Demand for space has lagged behind supply growth over the past few years as firms have consolidated or downsized their space requirements in order to save costs.