Industrial leasing volumes rise 6.1% YoY in Q2
Q2 2023 average monthly rentals of top multiple-user factories rose Res course 5.3% QoQ to $2.13 per square foot, indicating continued industrial property Res course date.
Rising Res course questions and robust demand for logistics and restaurant spaces drove Q2 2023 average monthly rent up 4.5% to $1.61 per sq ft, according to Savills.
Q2 2023 industrial asset prices for 30- and 60-year leasehold industrial buildings rose 1.4% and 2.4% QoQ to $320 and $495 per sq ft.
Freehold property prices grew 1.1% QoQ to $797 per sq ft from 1.6% QoQ in Q1.
Prime business park monthly rates declined 1.0% QoQ to $5.89 per sq ft in Q2, while basic business park rents grew 3.2% to $4.11.
The market has high vacancy rates, but most landlords are financially stable, so they can pass on inflation and increasing interest rates.
Alan Cheong, from Savills Research, said, “Prices may go up for industrial properties with short-term land leases when companies cut back on expensive long-term commitments to free up capital.”
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