Singapore’s industrial real estate market experienced significant rental growth across all segments in the first quarter of 2026, according to Cushman & Wakefield’s latest report. The surge is attributed to tightening vacancies and a limited supply pipeline, with prime logistics rents increasing by 1.5% quarter-on-quarter, marking the strongest growth since Q1 2024.
All industrial property segments recorded positive rental growth. Warehouse rents rose by 0.5% quarter-on-quarter, whilst suburban business park rents increased by 1.7%. City fringe business parks saw a 0.7% rise, and factory rents grew by 1.6% on the ground floor and 1.5% on upper floors. High-tech rents showed a more modest increase of 0.3%.
The report highlights that the inclusion of newer, higher-quality properties in Cushman & Wakefield’s tracking basket contributed to the outperformance of suburban business parks and prime logistics. Warehouse vacancy rates fell to 5.6%, the second consecutive quarter of decline, as demand from occupiers exceeded new completions.
Despite the positive rental momentum, Singapore’s economic growth forecast for 2026 may be revised lower due to geopolitical uncertainties, particularly the ongoing Middle East conflict. The Purchasing Managers’ Index (PMI) rose to 50.6 points in February, indicating improving manufacturing sentiment, although the overall economic outlook remains cautious.
The tightening supply situation is expected to persist, with new supply across most industrial segments in 2026 projected to fall below the ten-year historical averages. This scenario could further challenge the market’s resilience in the coming months.
