Can newer business parks be viable when older ones are grappling with rising vacancies?

VACANT spaces, dusty “for rent” signs and a distinct lack of human traffic – hardly a good look for real estate marketed as a modern business campus. Yet the reality facing Singapore’s older business parks seems grim, raising concerns over planning for and viability of even newer properties.

One concern is whether new space in the pipeline can be absorbed, given a coming spike in supply and a widening lag in take-up. Another question arising is whether better uses can be found for ageing, half-empty buildings if industries that had previously supported occupancy are not growing.

Overall vacancy across business parks hit 22 per cent as at end-March this year, indicated latest JTC figures. Vacancy has crept up from 18.7 per cent in the year-ago period, and 14.4 per cent in Q1 2022.