Singapore warehouse supply to hit over 2 million sq ft over the next three years

This is lower than the 10-year historical average of over 4m sq ft per annum.

According to CBRE, with greater emphasis on operational efficiency, industrial occupiers in Singapore are recalibrating expansion plans and exercising discipline and caution in space acquisition. 

In 2023, CBRE Research observed some occupiers consolidating their real estate footprint by relocating to smaller, modern hi-tech industrial facilities with improved specifications.

Here’s more from CBRE:

Leasing demand was anchored mostly by e-commerce and logistics, reflecting an ongoing trend of outsourcing logistics to 3PL companies to enjoy cost savings, as well as retailers adopting omnichannel strategies. 2024 might see more diversified demand, with companies in life sciences and technology becoming more active in leasing to meet manufacturing requirements.

Over the next three years (2024 – 2026), new warehouse supply is estimated at 2.19 million sq. ft. per annum - 47% lower than the 10-year historical average net supply of 4.13 million sq. ft. per annum. Although competition for space in modern logistics properties continue to persist, prime logistics rental growth is expected to moderate to 6% in 2024.