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user high-specs industrial market
in 2010.
Additionally, the independent multiuser
high-specs industrial stock
can also be expected to expand
by some 28,000 sqm by end 2010,
contributed by the conversion of
two single-user high-specs facilities
– Motorola Innovation Centre and
Motorola Excellence Centre – in
Ang Mo Kio into multi-user facilities
following their recent sale to United
Engineers Limited (UE).
Average monthly gross rents of independent multi-user
high-specs industrial space
S$ per sq ft per mth
$4.50
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: URA/ Colliers International Singapore Research
Ground Floor
Upper Floor
Demand and Occupancy
Demand for independent multi-user
high-specs industrial space was
affected by the economic downturn,
the rise in competition from Grade
B office space located at the Fringe
of CBD and Regional Centres where
rents had fallen by over 30%, as well
as competition from the business
and science parks.
According to Colliers International’s
research, an estimated 30,000
sqm of independent multi-user
high-specs industrial space were
returned to the market in 2009,
resulting in a 118.1% YoY jump in the
vacant stock to 151,000 sqm.
Rents of Independent Multi-
User High-Specs Space
Pressured by the surge in vacant
stock, the average monthly gross
rents of independent multi-user
high-specs industrial space recorded
double-digit declines in 2009.
Compared to its peak in 2Q 2008,
the average monthly gross rents
for ground floor space was down
29.0% to S$2.86 per sq ft as of 4Q
2009, while rents for upper floor
space fell 27.1% to S$2.61 per sq ft
as of 4Q 2009.
light industrial
Existing and Future Supply
As of 4Q 2009, Singapore is
estimated to hold an island-wide
stock of 28.15 million sqm 4 of light
industrial/conventional factory
space. This was up 4.0% YoY ,
following the net addition of 1.07
million sqm of space in 2009 – the
largest annual net increase in stock
seen since 2003 5 .
4
Official statistics on the light industrial/conventional factory market are unavailable. The existing stock of such space is estimated by deducting the total stock of business and
science park space (sourced from the URA) as well as Colliers International’s estimated total stock of independent multi-user high-specs industrial space, from the total islandwide
stock of all types of factory space (sourced from the URA). While this includes a proportion of independent single-user high-specs industrial space, it is deemed to provide a good
representation of the light industrial/conventional factory segment as independent single-user high-specs industrial space comprises only a small proportion of the overall factory
stock in Singapore.
5
Net supply data prior to 2003 is unavailable as the statistics series for business park space from the URA starts from 3Q 2002.
8th Annual Report FY09/10
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