Industrial demand shifts toward longer-tenure assets amid cautious operating environment: Savills Singapore
Values of 30-year leasehold industrial properties monitor by Savills slipped 0.6% q-o-q to $353 psf in 1Q2026, mirroring a lower hunger among financiers for such possessions. In contrast, values of 60-year leasehold possessions climbed up 1.4% q-o-q to $569 psf throughout the exact same duration. Property properties saw also stronger growth, with prices increasing 2.9% q-o-q to $876 psf.
Industrial assets with longer tenures in Singapore are seeing higher need, as international unpredictabilities prompt a flight to quality among occupants and investors, according to a research report by Savills Singapore.
Therefore, Savills Singapore is projecting general rental development across a lot of industrial sectors to continue to be secure this year. The company is forecasting rental growth for multiple-user factories and business parks to find in between 0% and 2% in 2026, whilst warehouse and logistics rents are anticipated to grow between 0% and 1%.
In the rental market, total leasing quantity also moderated, with JTC rental information showing a 1.2% q-o-q decrease to 2,867 transactions in 1Q2026. Meanwhile, rental price movements were blended, highlighting an extra discerning leasing market.
Singapore industrial sales weakened last quarter, amidst a much more mindful operating atmosphere. JTC Corp’s sales caution data reveals that strata commercial sales dropped 17.5% q-o-q to 335 offers, the most affordable quarterly volume since 2020, states Savills. “The restrained turn over mirrors continued customer selectivity, with capital deployment mostly focused in assets providing stronger basics, longer-term value conservation, or operational benefits,” the report includes.
Savills anticipates belief in the industrial market to stay mindful, as the Middle East problem potentially weighs on economic event in the forthcoming months. Against this backdrop, capitalist and occupier need are expected to remain discerning, skewing in the direction of “modern, well-located and higher-specification assets,” states Alan Cheong, executive supervisor for research and working as a consultant at Savills Singapore.
” The stronger performance of longer-tenure possessions underscores a trip to quality and period safety, with investors increasingly prioritising assets that provide better long-term worth retention in a much more careful investment atmosphere,” the record clarifies.
While purchase quantity decreased, Savills notes that demand stays sustained for “well-positioned properties with a practical total worth quantum”. Specifically, the company highlights a clear change in buyer choice in the direction of commercial possessions with longer land tenures.
Leas for Savills’ basket of prime storage facility and logistics assets rose 0.4% q-o-q to $1.83 psf per month, sustained by durable need for premium logistics centers. On the other hand, rental fees for prime multiple-user manufacturing facilities tracked by Savills fell by 1.4% q-o-q to $2.27 psf, which the firm credits to “better occupant selectivity and pricing sensitivity within the prime private factory sector”.
