Industrial demand shifts toward longer-tenure assets amid cautious operating environment: Savills Singapore
Rents for Savills’ basket of prime warehouse and logistics assets rose 0.4% q-o-q to $1.83 psf per month, sustained by resilient need for high-quality logistics facilities. On the other hand, leas for prime multiple-user manufacturing facilities tracked by Savills fell by 1.4% q-o-q to $2.27 psf, which the company credits to “greater occupier understanding and pricing sensitivity within the prime private factory segment”.
Savills expects sentiment in the industrial market to remain cautious, as the Middle East dispute potentially weighs on economic event in the coming months. Versus this backdrop, investor and occupier need are expected to remain careful, 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 assets underscores a flight to quality and period safety, with investors progressively prioritising possessions that use higher long-term worth retention in a much more selective investment atmosphere,” the report describes.
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. On the other hand, rental price activities were mixed, underscoring a much more discerning leasing market.
Singapore industrial sales weakened last quarter, amidst an extra cautious operating setting. JTC Corp’s sales caveat information reveals that strata commercial sales fell 17.5% q-o-q to 335 deals, the most affordable quarterly volume since 2020, says Savills. “The restrained turn over reflects persisted customer selectiveness, with funding release largely concentrated in assets offering stronger fundamentals, longer-term value preservation, or operational advantages,” the report adds.
Therefore, Savills Singapore is forecasting total rental development throughout the majority of industrial segments to remain steady this year. The company is forecasting rental development for multiple-user factories and business parks ahead in between 0% and 2% in 2026, whilst warehouse and logistics rents are expected to grow in between 0% and 1%.
Springleaf Residence floor plan
Industrial assets with a lot longer tenures in Singapore are seeing higher need, as worldwide unpredictabilities prompt a flight to quality amongst occupants and investors, according to a study report by Savills Singapore.
Values of 30-year leasehold commercial properties tracing by Savills dropped 0.6% q-o-q to $353 psf in 1Q2026, showing a lower cravings amongst investors for such possessions. In contrast, worths of 60-year leasehold properties climbed 1.4% q-o-q to $569 psf throughout the same period. Estate properties saw also more powerful development, with rates increasing 2.9% q-o-q to $876 psf.
While purchase volume declined, Savills notes that demand continues to be continued for “well-positioned assets with a sensible complete worth quantum”. In particular, the firm highlights a clear change in purchaser choice towards industrial assets with longer land tenures.
