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Tough 2024 for suburban business parks with rising vacancies; muted growth for industrial rents in 2025

Most industrial submarkets can expect to grow by 2 to 3% next year – but not business parks in the suburbs

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Samuel Oh

Samuel Oh

Published Thu, Dec 12, 2024 · 05:00 AM
    • Rents at suburan business park space, such as the Punggol Digital District, posted a gross effective rent of S$3.46 per square foot per month during Q3, says Cushman & Wakefield.
    • Rents at suburan business park space, such as the Punggol Digital District, posted a gross effective rent of S$3.46 per square foot per month during Q3, says Cushman & Wakefield. PHOTO: CMG

    THE business park segment in Singapore has faced challenges in 2024.

    It was besieged by concerns about whether new space in the pipeline could be absorbed, and increasing vacancy rates due to consolidation activities among companies looking to cut costs and use the workspace more efficiently.

    Islandwide vacancy rates for business parks rose to 21.1 per cent in Q3 2024, from 19.5 per cent in the year-ago period. The amount of vacant space was much higher for suburban business parks, at 32.2 per cent, against the 8.6 per cent vacancy rate in city-fringe business parks.

    Industrial propertyBusiness parksOutlook 2025

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