Industrial rents could dip 6-8% in Q4: Knight Frank

Singapore

AVERAGE industrial rents island-wide could fall 6-8 per cent year on year in the fourth quarter of 2016, as industrialists continue to take bold consolidation and relocation steps to cope with challenging business conditions, a Knight Frank report released on Friday said. Rentals have fallen 4.4 per cent cumulatively for the first half of this year, according to official data from JTC. Rental statistics for the third quarter are not released yet.

But according to Knight Frank's own basket of properties that it tracks, overall industrial rents fell 1.2 per cent quarter on quarter (q-o-q) in Q3 to S$2.08 per square foot per month (psf pm). The decline was broad-based, across most locations.