Know all about the Singaporean warehouse tenants
According to Colliers Research’s analysis of industrial properties in Singapore, third-party logistics and logistic support* businesses are the biggest tenant sector, accounting for 44 percent of occupied warehouses. “Singapore is a top-tier logistics center with the world’s biggest transshipment port, the second most visited port in terms of overall cargo tonnage processed, and the 12th best airport by cargo transportation as of 2018,” warehouse rental singapore stated Tricia Song, Colliers International’s Director of Research for Singapore. As a result, Singapore has become the preferred site for e-commerce companies looking to build a presence in the area. In recent years, the rise of e-commerce has had a favorable impact on Singapore’s third-party logistics and logistics sectors.”
The manufacturing industry foods, chemicals, and medicines (6%); oil, marine, and industry (5%); and IT and communication (5%) are the other warehousing occupiers (5 percent ). Colliers Research believes that regional trade and e-commerce expansion would lead to increased warehouse demands, in the long run, benefiting Singapore as a logistics center. However, due to Singapore’s modest market size and increasing inventory forecasting as well as stock management efficiency, the need for significant warehouse development may be reduced.
Changi stands out as a premier location for logistics companies.
However, warehouse space is in short supply, and unit configurations are generally lower than in the Western Part of the country. These segments and sub have the greatest occupancy rate among Singapore’s key logistical hubs due to competition.
Tuas, which came in second, has a plentiful supply of warehouses despite a double-digit vacancy rate. This area may be able to provide new warehouse stock with enormous unit sizes, large ramps, and vaulted ceilings. When the next mega port opens in the 2040s, Tuas will also be host to the world’s largest port facilities in a single place.
The third-placed Boon Lay/Jurong West is situated in the developed industrial and manufacturing sector stretching from Tuas through Pioneer to Jurong East. It has plenty of room, particularly in Boon Lay, where the vacancy rate is already at 10.5%. The proposed Jurong Technology District and the forthcoming Jurong Regional Line will benefit this area.
They can choose to locate further out from the downtown area to save money on rent, or they can choose for customized and built-to-suit warehouse facilities that provide more rental certainty. Meanwhile, landowners should constantly improve and renovate their properties to incorporate innovative and eco-friendly technology to prepare for the next industrialization, warehouse rental singapore Industry 4.0.