Q1 rents, capital values of industrial space up 5%: CBRE

Rents and capital values of all industrial space in Singapore rose about five per cent in the first quarter from the previous three months.CB Richard Ellis says further increases are expected later in the year.

The average monthly rents for warehouses improved by between 4 and 4.8 per cent during the three months to March.

Rents were $1.30 per square foot for ground floor units and $1.10 per square foot for upper floor units.

The property consultant says this is the first time that rents for warehouses have shown an increase since the second quarter of 2003.

It notes that more logistics companies are setting up distribution centres in Singapore due to its close proximity to the growing economies of China and India.

Average rents for hi-tech space rose to $2.10 per square foot from $2 per square foot in the previous quarter.

The increase in rent was driven mainly by demand from companies looking to hi-tech spaces as an alterative to limited traditional office spaces.

Some qualifying companies are also turning to hi-tech and business & science park spaces to meet their needs for a back-up recovery office.

Rents are expected to increase further during the year as the supply of office space becomes more limited.

Average capital values for freehold factory space rose by about five per cent to $349 per square foot for ground floor units and $284 per square foot for upper floor units.

Average capital values for freehold warehouses also rose by about five per cent to $404 per square foot for ground floor units and $352 per square foot for upper floor units.

Source: Channel NewsAsia, 04 April 2007

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