LANDLORDS holding modern warehouse assets had another standout year in 2023. But deteriorating business sentiment will weigh on high rents, and business parks could suffer from a flood of new supply.

Tricia Song, CBRE’s head of research for Singapore and South-east Asia, said: “Business sentiment in the industrial sector is relatively muted, as priorities shifted to managing costs amid high interest rates, concerns over geopolitical risks and China’s economic issues.”

Occupiers were not as quick to expand and take up more space in the second half of 2023. Still, “the industrial sector remains fundamentally strong and occupiers were keen to secure high-quality spaces, thus opting to renew their leases or relocate if an attractive opportunity arose”, she added.