Singapore’s industrial market has marked its 22nd consecutive quarter of rental growth, with the JTC All Industrial Rental Index rising by 0.4% in the first quarter of 2026. This growth, however, shows a slight deceleration from the 0.5% increase observed in the previous quarter. Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, noted that whilst occupier demand remains robust, tenants are becoming more selective, focusing on location and asset specifications.
Among the various segments, single-user factory rents saw the most significant increase, rising by 1.0% quarter-on-quarter. This was bolstered by major completions such as Trans Auto Logistics’ facility and Sumitomo Seika Singapore’s facility. Meanwhile, multi-user factory rents increased by 0.5%, with notable completions including Smart Food @ Mandai and Azalea Kitchens.
The business park segment experienced a 0.3% rise in rents, despite a slight increase in vacancy rates to 23.3%. This is attributed to challenges faced by some facilities in retaining tenants due to less competitive specifications. Conversely, newer assets in City Fringe locations continue to attract tenants, sustaining rental growth.
Warehouse rents rose by 0.2%, with significant completions like Jurong Logistics Terminal 5 and a cold-chain food logistics facility at 8 Jalan Besut. However, occupancy rates for warehouses decreased slightly to 89.4%.
Looking ahead, the Johor-Singapore Special Economic Zone is expected to enhance investment confidence, whilst Singapore’s strong AI-related manufacturing sector is likely to support continued demand. CBRE anticipates steady rental growth in the prime logistics segment, with occupancy rates potentially reaching 97% by the end of 2026.
