Industrial Property Snapshop In Singapore
The industrial property in Singapore is increasing in a stable pace in 2008 as compare to the residential dip. This trend may not be the same in 2009.The industrial rent will likely to experience the dip as it is mainly due to the poor manufacturing sector activities. The manufacturing sector is experiencing a challenging time as it activities dip tremendously due the economic downturn. Manufacturing companies are looking into cutting down their business space, which in turn increase the supply in the market. Relocation to is not a popular option this moment of time.
Landlord JTC was also hit with a fall in their take p rate of its industrial space during such tough period. For their ready-build factory, lease termination is 21,200sqm and new space leased is 20,000sqm. The termination of the ready-built reached a five year high. About 300 firms terminated their lease in 2008. In the area of industrial land, it remained in positive with a take up of 17.5 ha in the fourth quarter. With the market condition, the landlord grant more than 7000 customers a 15 percent rent rebate for one year.
Many industrial tenants are looking to renegotiate the current rent. The other alternative is to downsize or sublet their current space. With such circumstance, the downward pressure of the factory for rent pricing will follow. Relocation is high avoided by most industrial company, as it will also involve spending cash on the fitting out of the new factory space
In spite of all this, Tuas area still shows vibrancy, as more industrial company is moving towards West. New development like Tuas Connection and Tuas Lot are attracting many industrial tenants seeking to expand in such time. Of course, in such economic downturn, active industrial investor is watching for good buy in this sector. Check out Tuas Connection For Rent and Tuas Lot for Sale.
About the Author:Also visit factory for rent to understand more of industrial real estate scene in Singapore
Article Source: ArticlesBase.com - Industrial Property Snapshop In Singapore