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However, it was also noted that warehouse occupancy dipped marginally by 0. Nonetheless, it is likely that the tight upcoming warehouse supply will lend support to occupancy.
CBRE Research is of the view that warehouse rents are poised to be more resilient, supported by a limited supply pipeline. Meanwhile, factory rents are expected to stay flat in , suppressed by a prevailing vacancy volume of However, with new supply of factory space in remaining sizable at around Warehouse supply is set to increase to 3. Given the challenging global trade outlook and the elevated vacancy rate of Meanwhile, we forecast the flight to quality in business park and high-specs segments to continue due to limited supply amid higher demand for premium space.
Centrally-located business parks and high-spec buildings with good amenities should attract healthy demand while those older and further away from MRT stations in the suburbs could face more difficulty in finding tenants, despite lower rents.
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