Prime performance in Singapore industrial; tenants gain edge
3 Feb 20262 min read
Summary
- Singapore’s industrial rents and prices continued to rise, with the JTC All-Industrial rental index up 2.4% for the year and prices at their strongest since 2015. However, new supply outpaced take-up, easing overall occupancy to 88.7% and giving tenants more choice.
- Warehouses led performance on the back of 3PL and electronics demand, while factories and business parks posted modest but steady rental growth. Modern, automation-ready and high-spec assets attracted the bulk of leasing, reinforcing a bifurcated market favoring newer developments.
- With limited warehouse completions until 2027 and demand supported by AI-driven electronics, trade rerouting, and recovering business confidence, Colliers expects industrial rents to rise 1–3% and prices 3–5% in 2026.
SINGAPORE, February 03, 2026 – Singapore’s industrial market ended 2025 on firm footing. The JTC All‑Industrial rental index rose 0.5% QoQ in Q4 and 2.4% for the year, while new supply outpaced take‑up and nudged overall occupancy lower to 88.7%. Prices increased 1.4% QoQ, to the strongest level since 2015, supported by portfolio activity among institutional investors.
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“Singapore’s industrial sector remains fundamentally sound: rents and prices continue to edge higher, but the market is more discerning,” said Catherine He, Head of Research, Singapore, Colliers. “In 2026, performance will hinge on specification and adaptability − quality, automation ready assets are best placed to capture demand.”
Q4 underscored selective strength. Net supply reached 3.7 million sq ft, led by factory completions, while net absorption declined to 1.1 million sq ft, reinforcing a tenant friendly backdrop as the pipeline is digested.Warehouses led leasing: rents rose 1.1% QoQ in Q4 and 3.0% for 2025, with occupancy up 20 bps to 89.8% on take-up at recent completions. Demand was anchored by 3PLs and electronic firms with modern ramp up stock preferred. With no warehouse completions until 2027, prime vacancy is set to tighten. Factory rents increased 0.2% (multi-user) and 0.7% QoQ (single-user), taking 2025 growth to 1.8% and 2.7% respectively. Business Park rents rebounded 0.4% QoQ in Q4 to 2.6% for the year, with occupancy up 10 bps to 77.1% as newer schemes set pricing.
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“We expect leasing momentum to build as clarity returns to global trade policy and companies resume deferred expansions,” added Nicolas Menville, Executive Director & Head of Singapore based Industrial Clients, Colliers. “Higher‑value manufacturers are leading the next wave of activity, driving demand for sophisticated storage, logistics, and high‑spec production facilities.”
Notable projects in the pipeline include 27 International Business Park (expected TOP 2026), as well as logistics and manufacturing developments such as Sunview Logistics & Container Hub, Logis Hub @ Clementi Loop, and a single user factory at Tampines Industrial Avenue 1, schemes reflect continued investment in modern, specification rich space.The sector enters 2026 with healthy structural underpinnings and resilient pockets of demand. Tailwinds from AI driven electronics, robust U.S. consumption, and tariff related rerouting of regional shipments through Singapore will continue to support select segments and reinforces Singapore’s role as a hub for high value manufacturing. Colliers forecasts industrial rents to rise 1–3% in 2026, with prices up 3–5%.