Singapore’s industrial real estate market experienced significant rental growth across all segments in the first quarter of 2026, driven by tightening vacancies and a limited supply pipeline, as reported by Cushman & Wakefield. Prime logistics rents increased by 1.5% quarter-on-quarter, the most substantial rise since early 2024, whilst warehouse vacancy rates fell to 5.6%, marking a second consecutive quarter of decline.
The report highlights that all industrial property segments recorded positive rental growth in Q1 2026. Warehouse rents accelerated by 0.5% quarter-on-quarter, and suburban business park rents saw a 1.7% increase. Factory rents also rose, with ground floor rents up by 1.6% and upper floor rents by 1.5%. High-tech rents grew more modestly at 0.3%, led by modern high-specification developments.
Brenda Ong, Executive Director and Head of Logistics & Industrial Services at Cushman & Wakefield Singapore, noted, “Singapore’s industrial market is seeing genuine tightening across most segments. Vacancy is declining, occupiers remain active, and the pipeline is lean.”
The constrained supply pipeline is expected to sustain market tightness, with new supply across most industrial segments in 2026 projected to fall below the 10-year historical averages. The lack of new major prime logistics projects and a tapering business park pipeline further contribute to this trend.
Wong Xian Yang, Head of Research Singapore & Southeast Asia at Cushman & Wakefield, stated, “Supply across most segments will stay lean through the medium term, and occupiers with active space requirements would be well-advised to plan ahead rather than wait for conditions to ease.” The ongoing geopolitical uncertainty and the nascent influence of the Johor-Singapore Special Economic Zone may also impact future rental growth.
