Singapore city fringe business park rents to rise as firms cut costs: Cushman & Wakefield

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RENTS for business parks in the city fringe in Singapore are projected to rise as more firms seek out business parks with Grade A office specifications in a bid to cut their real estate costs. Read more at The Business Times.

However, rents for business parks in the outlying areas will decline due to older stock in these areas, Cushman & Wakefield said. In the third quarter, rents for business parks in outlying areas stood at S$3.64 psf/month.

Science park facilities, which house a large cluster of pharmaceutical and biomedical firms, are expected to see rents increase slightly due to demand growth for products and research and development in the healthcare sector. Rents for science park facilities stood at S$4.27 psf/month in Q3. Despite the hype in investor interest in logistics assets, the level of investment activity has been low. The report noted that the number of inked deals is still lagging against the broader economic challenges. Industrial assets were down 39 per cent to S$446.5 million in Q3 from the quarter before and declined 89 per cent year on year.

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